In the Keynesian view, equilibrium takes place when
a. the real and nominal interest rates are equal.
b. the level of total spending in the economy is equal to current output.
c. current output is equal to the economy's long-run potential.
d. the money supply is growing at a constant rate.
B
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If Pastry Paradise takes over Sweet Tooth, at what level of production would it be indifferent between which technology is used
a. 500 b. 750 c. 250 d. 125
Use the following graph to answer the next question.
All else held constant, a rightward shift of the demand curve would ________.
A. depreciate the dollar B. depreciate the euro C. reduce the equilibrium quantity of euros D. appreciate the dollar
Suppose there is an increase in the U.S. interest rate relative to European interest rates. How does this affect European investors?
a. Europeans decrease their demand for U.S. investments, shifting S2 to S1.
b. Europeans offer dollars for sale in order to buy euros, shifting S1 to S2.
c. Europeans offer euros for sale in order to buy dollars, shifting S1 to S2.
d. Europeans increase their demand for euros, shifting S2 to S1.
Total utility may be determined by:
A. multiplying the marginal utility of the last unit consumed by the number of units consumed. B. summing the marginal utilities of each unit consumed. C. multiplying the marginal utility of the last unit consumed by product price. D. multiplying the marginal utility of the first unit consumed by the number of units consumed.