In the Keynesian model, the 45-degree line consists of the points where
a. planned consumption is equal to planned saving.
b. total output is equal to aggregate expenditure.
c. total consumption is equal to total expenditure.
d. total saving equals total investment.
b. total output is equal to aggregate expenditure.
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The price elasticity of demand for corn is 0.4. A new hybrid of corn is discovered and all farmers start to use it, which increases the quantity of corn they can produce from each acre. What happens to the farmers' total revenue?
A) The total revenue will increase. B) The total revenue will decrease. C) The total revenue will not change. D) There is not enough information to determine what happens to the total revenue.
An "unsecured" loan is one
A) with no stated collateral. B) that is pending approval by a bank loan committee. C) which has collateral. D) in which the borrower is delinquent in loan payments but has not formally defaulted on.
In general, a producer's marginal cost of additional units of quality ________ as more units of quality are included in the product, causing the marginal cost curve from quality improvement to be ________ sloping.
A) falls; downward B) increases; downward C) falls; upward D) increases; upward
Trade can make everybody better off because it
a. increases cooperation among nations. b. allows people to specialize according to comparative advantage. c. requires some workers in an economy to be retrained. d. reduces competition among domestic companies.