Keynesian picture the aggregate demand curve as rather __________, partly because interest rates may be __________ to changes in the real money supply
A) flat; highly responsive
B) flat; quite unresponsive
C) steep; highly responsive
D) steep; quite unresponsive
D
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Refer to the above figure. Unexpected expansionary monetary policy has caused the aggregate demand curve to shift to AD2. In the short run
A) the unemployment rate can increase or decrease depending upon how much the LRAS will shift. B) the unemployment rate will be smaller than the rate before the expansionary monetary policy. C) the unemployment rate will be larger than the rate before the expansionary monetary policy. D) the unemployment rate will be the same rate as before the expansionary monetary policy.
If a tax rate is constant as income rises, the tax is proportional
Indicate whether the statement is true or false
Which of the following is true about location rents? a. They are illegal in many inner-city locations. b. They are found by taking the shaded area below the transport cost curve. c. They arise from differential costs in transporting food to the marketplace. d. They arise when the MRP is lower than the cost of transporting food to the marketplace
e. They would not exist if all land were of similar quality.
An increase in net exports will have a greater effect on equilibrium real GDP if the
A. marginal propensity to consume is smaller. B. average propensity to consume is larger. C. marginal propensity to save is larger. D. marginal propensity to save is smaller.