The two most comprehensive, widely accepted macroeconomic models are
A) the classical model and the supply-side model.
B) the supply-side model and the real business cycle model.
C) the classical model and the Keynesian model.
D) the Austrian model and the Keynesian model.
C
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Aggregate expenditure is total:
A. spending on final goods and services. B. value added in the economy. C. revenue from the sale of goods and services. D. income of households, businesses, governments, and foreigners.
If the market price is lower than a perfectly competitive firm's average total cost, the firm will
A) immediately shut down. B) continue to produce if the price exceeds the average fixed cost. C) continue to produce if the price exceeds the average variable cost. D) shut down if the price exceeds the average fixed cost. E) shut down if the price is less than the average fixed cost.
Income is created when
a. individuals supply others with productive resources that they value. b. the government levies taxes on some and transfers the revenues to others. c. the general level of prices increases. d. shares of stock are sold from their current owner to another party.
Explain the economic concept of convergence
What will be an ideal response?