Which of the following statements is correct?
a. The classical aggregate AD curve can be shifted by monetary and non-monetary factors.
b. The classical AS schedule is horizontal while the Keynesian aggregate AS schedule is vertical.
c. The Keynesian AD curve only shifts in response to monetary factors.
d. The classical aggregate supply schedule slopes upward to the right while the Keynesian aggregate supply schedule is vertical.
e. none of the above are correct.
E
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Economics is:
a. concerned with the problem of scarce resources combined with unlimited wants. b. the study of how to make money in the stock market. c. highly theoretical and has little practical application. d. primarily concerned with day-to-day business decision making. e. a decision making process involving individuals and firms rather than governments.
With the economy booming, the government starts to worry about the increasing rate of inflation, and decides to cut its spending on highway maintenance and defer it to sometime in the future. This is an example of:
A. an automatic stabilizer. B. discretionary fiscal policy. C. expansionary fiscal policy. D. None of these is true.
Although the U. S. airline industry has only a relatively small number of sellers, the market is nevertheless highly competitive. The reason is that:
A. the number of buyers is very large. B. due to fierce competition, no firm has significant control over the quantity supplied. C. most airline routes are served by relatively many sellers. D. due to fierce competition, no firm has significant control over prices.
The MPC on ________ income is less than the MPC on ________ income according to ________ theory
A) transitory; permanent; Friedman's B) transitory; permanent; Modigliani's C) permanent; transitory; Modigliani's D) permanent; transitory; Friedman's