If the demand and supply curves are described by the following equations P = a - bQ and P = c + dQ, respectively, the equilibrium quantity is Q* = (a - c) / (b + d)
Indicate whether the statement is true or false
TRUE
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According to Figure 12.1, if the economy moves from point C to point A because of increased government spending, the amount of private spending crowded out is equal to the distance
A. BD. B. BC. C. AB. D. AC.
In which case is velocity the highest?
a. the price level equals 4, the money supply equals 5,000 . and output equals 20,000. b. the price level equals 4, the money supply equals 20,000 and output equals 5,000. c. the price level equals 2, the money supply equals 5,000 . and output equals 20,000. d. the price level equals 2, the money supply equals 20,000 and output equals 5,000.
According to Keynes, if the economy is in a deep recession, an increase in aggregate demand will increase _____ without putting significant upward pressure on _____.
Fill in the blank(s) with the appropriate word(s).
Which of the following is both a major import and a major export of the United States?
A. Apparel B. Agricultural products C. Computers D. Petroleum