This graph reflects a Keynesian viewpoint. How would the economy respond to an aggregate demand decrease under the classical model?
a. The shift from AD1 to AD2 would also shift LRAS leftward to a new position at RGDP2.
b. The economy would quickly adjust to a new point of long-run equilibrium where AD2 intercepts LRAS.
c. The shift from AD1 to AD2 would produce a short-run equilibrium point at e2 that differs from E1.
d. The economy would quickly adjust to a new point of long-run equilibrium where AD1 intercepts LRAS.
b. The economy would quickly adjust to a new point of long-run equilibrium where AD2 intercepts LRAS.
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Refer to the scenario above. Instead of the price increase, if there is a fall in price from $6 to $4, the absolute value of Gary's arc elasticity of demand for shirts is:
A) 1.2. B) 2.14. C) 4. D) 5.
A U.S. citizen buys a newly issued share of stock in England, paying for his order with a check, which the British company deposits in its own U.S. bank account in New York. How is this transaction accounted for in the balance of payments?
A) financial account, U.S. asset export B) current account, U.S. service import C) current account, British good export D) financial account, British asset import E) financial account, U.S. asset import
What are property rights?
Unemployment insurance:
A. has a set minimum in the US. B. is typically 32 weeks in the US, except for times of unusually high unemployment. C. varies widely across countries. D. All of these are true.