The economy is in equilibrium, TP = TE, and Real GDP is $4,000 billion. The MPC is 0.60, the multiplier is operative, and idle resources exist at each expenditure round. Autonomous investment spending rises by $13 billion. As a result, the __________ curve shifts __________, inventory levels unexpectedly __________, business firms __________ the quantity of goods and services they produce, and
Real GDP __________ by __________.
A) TE, downward, rise, increase, rises, $32.5 billion
B) TE, upward, fall, increase, rises, $101.5 billion
C) TE, upward, fall, decrease, rises, $32.5 billion
D) TE, upward, fall, increase, rises, $32.5 billion
E) TP, upward, fall, increase, rises, $101.5 billion
D
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The ________ rate represents the difference between the spot and forward price
A) profit B) swap C) spread D) risk
Contractionary monetary policy should be used if:
A) aggregate demand-aggregate supply equilibrium is below potential output. B) aggregate demand-aggregate supply equilibrium is above potential output. C) aggregate demand-aggregate supply equilibrium is equal to potential output. D) none of the above.
Labor (# of employees)Total Output0011025031104160520062307255827592901030011305Assume the table shown is for a hat factory, and shows the total production of hats given various numbers of employees. What is the marginal product of the ninth worker?
A. 15 B. 5 C. 290 D. 10
Opportunity cost is best defined as
A) the sum of the dollar values of all alternatives given up when choices are made. B) the cost of producing the purchased goods. C) the next highest valued alternative when a choice is made. D) the dollar price of the purchased item.