Connecting all efficient points, we find the ____________
Fill in the blank(s) with the appropriate word(s).
Ans: Contract Curve
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If cyclical unemployment is eliminated in the economy, then
A) the unemployment rate is above the natural rate of unemployment. B) the economy is considered to be at full employment. C) the unemployment rate is below the natural rate of unemployment. D) the economy is at less than full employment.
The crowding-out effect stresses that
a. an increase in government expenditures will stimulate aggregate demand and, thereby, help to prevent recessions. b. an increase in taxes will restrain aggregate demand and, thereby, help to control inflation. c. additional government borrowing to finance a larger deficit will increase the demand for loanable funds, causing real interest rates to rise. d. a budget deficit is a highly effective tool with which to combat recessions. e. both a and d are correct.
If the stock market plunged over the next week, consumers would:
A. Rush to buy more goods and services. B. Buy more stocks to make up for their losses. C. Demand fewer goods and services. D. Cause the aggregate demand curve to shift to the right.
Refer to the graph shown. Given the price increase in the graph, we can infer that the international effect by itself:
A. reduces the quantity of aggregate demand by less than Y0 ? Ye. B. reduces the quantity of aggregate demand by Y0 ? Ye. C. raises the quantity of aggregate demand by less than Y0 ? Ye. D. raises the quantity of aggregate demand by Y0 ? Ye.