In Figure 10-5 above, suppose that the economy's initial steady-state point is A. An increase in the rate of national saving changes the steady-state point to
A) point B.
B) point C.
C) point D.
D) a point to the left of point A.
B
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A single firm in a contestable market is limited in the amount of economic profit it can earn because there
A) are barriers to entry. B) are no barriers to entry. C) is collusion. D) are government regulations limiting its profit.
Which of the following would help to avert a healthcare crisis?
a. requiring employers to pick up 100 percent of the healthcare costs for their employees b. discouraging medical savings accounts since these provide additional funds for medical care, and therefore, they are likely to drive up medical prices c. discouraging the purchase of health insurance plans with small co-payments d. structural changes that would increase the competitiveness of the health insurance and medical services markets
The quantity equation relates a measure of the money supply (M), to the velocity of money (V), the GDP deflator (P) and real GDP (Y). Which of the following expression accurately describes the quantity equation?
What will be an ideal response?
Other things the same, if the exchange rate changes from 6 Chinese yuan per dollar to 7 Chinese yuan per dollar, then the dollar
a. appreciates and buys more Chinese goods. b. appreciates and buys fewer Chinese goods. c. depreciates and buys more Chinese goods. d. depreciates and buys fewer Chinese goods.