In deriving LM curves, holding the real money supply constant while raising real GDP causes us to
A) trace up along an LM curve.
B) trace down along an LM curve.
C) shift the LM curve to the right.
D) shift the LM curve to the left.
A
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What is the difference between positive and normative economics? How can knowledge of positive economics be useful in normative economics?
The Great Depression of the 1930s
a. confirmed the value of a "hands off" policy for governments. b. was exacerbated by an expansionary monetary policy. c. was a worldwide event. d. continued throughout the 1940s without any interruption.
Which of the following is a final good or service?
a) a haircut purchased by a father for his 12 year-old son b) fertilizer purchased by a farm supplier c) diesel fuel bought for a delivery truck d) Chevrolet windows purchased by a General Motors assembly plant
In microeconomics, which of the following is synonymous with decreasing returns of scale?
a. monopoly b. economies of scale c. diminishing returns d. diseconomies of scale