To reach general equilibrium, the price level adjusts to shift the ________ until it intersects with the ________.
A. ND curve; FE line and NS curve
B. IS curve; FE line and LM curve
C. FE line; LM and IS curves
D. LM curve; FE line and IS curve
Answer: D
You might also like to view...
Which of the following is the best example of an investment in human capital?
a. an increase in the number of hours worked per week by a worker in an unskilled laboring job b. the purchase of company stock by a worker c. a summer internship at a law firm for someone going to law school d. payments into a retirement pension plan by a skilled laborer
In the long-run equilibrium of a market with free entry and exit, marginal firms are operating
a. at the point where average variable cost equals marginal cost. b. at the minimum point on their marginal cost curves. c. at their efficient scale. d. where accounting profit is zero.
When a business purchases a $50,000 computer system by writing a check, the business's balance sheet will:
A. show an increase in assets and liabilities for $50,000. B. not reflect any increase in assets or liabilities, only a change in the composition of assets. C. only show an increase in assets of $50,000. D. only show an increase in liabilities of $50,000.
During recessions, automatic stabilizers tend to make the government's budget
a. move toward deficit. b. move toward surplus. c. move toward balance. d. not necessarily move the budget in any particular direction.