Under Keynesian analysis, aggregate demand can be written as
A) Yad = C + I + G + NX.
B) Yad = C + I + G - NX.
C) Yad = C - I - G - NX.
D) Yad = C + I - G - NX.
A
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When ________ in a market, the total net benefit to society is maximized
A) deadweight loss is maximized B) consumer surplus is minimized C) producer surplus is minimized D) a competitive equilibrium is achieved
Assume that Y is normally distributed N(μ, σ2). To find Pr(c1 ≤ Y ≤ c2), where c1 < c2 and di = , you need to calculate Pr(d1 ≤ Z ≤ d2) =
A) Φ(d2) - Φ(d1) B) Φ(1.96) - Φ(1.96) C) Φ(d2) - (1 - Φ(d1)) D) 1 - (Φ(d2) - Φ(d1))
The quantity theory of money states explicitly that the:
A. value of money is determined by the overall quantity of money in existence. B. Real GDP is determined by the money supply. C. money supply is determined by the price level. D. there is no relationship between the value of money and the quantity of money in existence.
Suppose the equilibrium price of bread is $2.00 per loaf. If the government sets a price ceiling of $2.50 per loaf: a. the price of wheat will rise and a shortage is created
b. the quantity supplied of wheat will increase. c. there will be no change in the quantity of bread demanded or supplied. d. there will be a shortage of bread.