In the classical model, which of the following is treated as independent of the interest rate?
a. the quantity of loanable funds demanded by government
b. the quantity of loanable funds demanded by businesses
c. the total quantity of loanable funds demanded
d. household saving
e. the total quantity of loanable funds supplied
A
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Refer to the scenario above. What is the nominal GDP of the economy in 2012?
A) $47,000 B) $56,000 C) $55,000 D) $49,500
The above figures show the market for gasoline. Which figure shows the effect of a nation-wide strike by municipal bus drivers, which causes more people to drive their cars to work?
A) Figure A B) Figure B C) Figure C D) Figure D
Figure 5-5 shows a consumer budget line for French fries and hamburgers. The household allocates a budget for these two goods. Suppose that the price of an order of French fries is $2, what is household income?
A. $1 B. $2 C. $5 D. $10
If additional units of a good could be produced at a constant opportunity cost, the production possibilities frontier would be linear
Indicate whether the statement is true or false