Refer to Figure 26-4. In the figure above, a movement from point A to point B would be caused by
A) a decrease in real GDP. B) an increase in the interest rate.
C) a decrease in the price level. D) an increase in the price level.
B
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A major difference between the transactions demand for money and the precautionary demand is that the
A) transactions demand is for emergencies while the precautionary demand is for every day expenditures. B) transactions demand involves expected expenditures while the precautionary demand involves unexpected expenditures. C) transactions demand means that people are foregoing interest but they are not foregoing interest in the precautionary demand. D) transactions demand leads to the purchase of assets while the precautionary demand does not.
Which of the following statements about the composition of price indices is NOT true?
A) The Paasche index is calculated with current-year prices. B) The Paasche index is calculated with base-year quantities for the bundle. C) The Laspeyres index is calculated with current-year prices. D) The Laspeyres index is calculated with base-year quantities for the bundle.
In the long run
A. the expansion path shows how the input marginal products change as the firm's output level changes. B. all inputs are fixed. C. a firm is making the optimal input choice when the marginal rate of technical substitution is equal to the input price ratio. D. both a and b E. none of the above
If there's no import, the multiplier in Q9 equals
What will be an ideal response?