The term Ceteris paribus means that:
a. everything is changing.
b. all other things remain unchanged.
c. no one knows which variables will change and which will remain constant.
d. the basic principle of economics do not apply to the case being considered.
b
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Suppose the intersection of the IS and LM curves is to the right of the FE line. What would most likely eliminate a disequilibrium among the asset, labor, and goods markets?
A) A rise in the price level, shifting the LM curve up and to the left. B) A fall in the price level, shifting the LM curve down and to the right. C) A rise in the price level, shifting the IS curve up and to the right. D) A fall in the price level, shifting the IS curve down and to the left.
If the government announces a big tax cut, which of the following combinations of events would be most likely to occur?
a. An upward shift of the aggregate expenditure line, a rightward shift of the money demand curve, and a rightward shift of the aggregate demand curve b. A downward shift of the aggregate expenditure line, a leftward shift of the money demand curve, and a leftward shift of the aggregate demand curve c. An upward shift of the aggregate expenditure line, a leftward shift of the money demand curve, and a rightward shift of the aggregate demand curve d. A downward shift of the aggregate expenditure line, a rightward shift of the money demand curve, and a rightward shift of the aggregate demand curve e. An upward shift of the aggregate expenditure line, a rightward shift of the money demand curve, and a leftward shift of the aggregate demand curve.
When the United States trades with China,
a. both countries will likely benefit. b. only United States will benefit. c. only China will benefit. d. neither country will benefit.
When individuals increase their personal wealth through production and exchange, they
What will be an ideal response?