In the Keynesian analysis of macroeconomic equilibrium, the key determinant of real GDP is
A. national income.
B. aggregate supply.
C. aggregate demand.
D. disposable income.
C. aggregate demand.
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Lower transaction costs are a benefit of fixed exchange rates. Therefore, relative prices in two trading nations linked by fixed exchange rates should:
A) experience more price divergence. B) experience more price convergence. C) have less arbitrage and more speculation. D) have lower costs of production.
The satisfaction or pleasure one gets from consuming a good or service is called:
A. price. B. preferences. C. consumption. D. utility.
Suppose that the value of the short-run absolute elasticity of demand for a good is 0.9. Then, we know the long-run absolute price elasticity of demand will be
A. less than 0.9. B. inelastic. C. greater than 0.9. D. 0.
The costs associated with the negotiation and enforcement of an agreement are
A) property costs.
B) resource factor costs.
C) transaction costs.
D) attorney fees.