In this graph, in order for expansionary policy to put equilibrium on the LRAS curve, ______.
a. prices and output must increase
b. prices must decrease, and output must increase
c. prices and output must decrease
d. prices must increase, and output must decrease
a. prices and output must increase
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Suppose the exchange rate for the U.S. dollar falls. This could be caused by
A) a decrease in U.S. import demand. B) an increase in the world demand for U.S. exports. C) an increase in the U.S. interest rate differential. D) a fall in the expected future exchange rate.
The aggregate expenditures function (AE) is the total spending in an economy at a given: a. rate of interest
b. level of disposable income. c. level of autonomous investment. d. price level.
Monopolies do not last in the long-run
Indicate whether the statement is true or false
In the figure below, $40,000 for certain is as desirable as $47,000 with risk.
A. True
B. False
C. Uncertain