According to Keynes, which of the following is always true at macro equilibrium?
A. The economy achieves full employment
B. Aggregate demand is inadequate
C. Prices are at the appropriate level
D. Aggregate demand equals aggregate supply
D. Aggregate demand equals aggregate supply
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Use the supply and demand model to explain why the salaries of nurses in increasing?
a. Demand has increased while supply also increased. b. Demand has increased while supply decreased. c. Demand has decreased while supply decreased. d. Demand has decreased while supply increased.
Later, the teaching assistant in Eleanor's economics course gives her some advice. The teaching assistant says, "Based on past experience, working on 12.5 problems raises a student's exam score by about the same amount as reading the textbook for 1 hour." For simplicity, assume students always cover the same number of pages during each hour they spend reading. Given this information, in order to use her 4 hours of study time to get the best exam score possible, how many hours should she have spent working on problems and how many should she have spent reading?
What will be an ideal response?
The larger the coefficient of price elasticity of demand for a product, the:
A. larger the resulting price change for an increase in supply. B. more rapid the rate at which the marginal utility of that product diminishes. C. less competitive will be the industry supplying that product. D. smaller the resulting price change for an increase in supply.
The increase in spending that occurs because domestic goods become cheaper relative to foreign goods when the price level falls is known as the:
A. interest rate effect. B. international trade effect. C. price effect. D. wealth effect.