In the simple circular flow model, if planned I exceeds planned S, then
a. the economy is not at equilibrium.
b. the size of the circular flow is increasing.
c. if the economy is at full employment, then prices will rise.
d. All of these.
d. All of these.
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The real business cycle theory is based on all of the assumptions below EXCEPT
A) flexible wages. B) flexible prices. C) pure competition. D) small menu costs.
Refer to Figure 3.4. Serena's dominant strategy is to play ________ and Austin's dominant strategy is to play ________
A) North; North B) South; South C) North; South D) Neither Serena nor Austin has a dominant strategy.
Which of the following events will help to burst an asset price bubble?
A) Speculative demand for the asset quickly declines. B) Speculative demand for the asset quickly increases. C) New information leads buyers to doubt that prices will continue to increase in the future. D) A and C are correct
In the United States, a patent lasts
A) 7 years. B) 14 years. C) 20 years. D) forever.