The AD Curve ________
A) demonstrates how central banks respond to changes in interest rates by changing the inflation rate
B) shows how changes in equilibrium output affect the inflation rate
C) explains long run fluctuations in output and inflation
D) all of the above
E) none of the above
E
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Refer to Table 9-15. Looking at the table above, real average hourly earnings were equal to ________ in 2015
A) $9 B) $9.52 C) $10 D) $12
If the interest rate is 10%, the present value of $1 next year is
A) $1.20. B) $1.10 C) 91 cents. D) 10 cents. E) 9 cents.
Graphically, consumer surplus is the area:
a. above the equilibrium price and below the demand curve. b. below the equilibrium price and above the supply curve. c. above the equilibrium price and below the supply curve. d. below the equilibrium price and above the demand curve. e. above the equilibrium price and above the supply curve.
What is the value of the multiplier if the marginal propensity to consume is 0.5?