Only when the goods market is in equilibrium is it true that ________
A) actual expenditure equals output
B) the amount of goods and services produced equals actual expenditure
C) planned expenditure equals the amount of goods and services produced
D) demand for foreign goods equals foreigners' demand for domestic goods
E) none of the above
C
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At an interest rate of 4 percent, what would be the present value of receiving $4,000 four years from now?
A) $3,420 B) $3,637 C) $3,704 D) $3,847
Which of the following is a necessary condition for price discrimination to be profitable?
a. All consumers must have an identical demand for the product. b. Groups of consumers with different demand elasticities must be easily distinguishable. c. The market demand for the product must be highly elastic. d. It must be possible for buyers to resell the product at a low cost.
If a natural disaster were to cause a negative long-run supply shock to the economy, once the economy adjusts, the new equilibrium will be at a:
A. higher price level and lower level of output. B. lower price level and lower level of output. C. higher price level and higher level of output. D. lower price level and higher level of output.
Monetary policymakers could keep equity and property price bubbles from developing by:
A. lowering their interest rate target when they suspect a bubble. B. expanding the money supply in the economy. C. raising their interest rate target when they suspect a bubble. D. purchasing U.S. treasury securities to drive up their prices.