Define asset market equilibrium and state the asset market equilibrium condition
What will be an ideal response?
Asset market equilibrium exists when the quantity of assets supplied equals the quantity of assets demanded in a national economy in some time period. The asset market equilibrium equation is M/P = L(Y, r + ?e).
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The market supply curve for labor: a. shows the relationship between the wage rate and the number of employees firms are willing to hire
b. shows the relationship between the price of output and the number of employees firms are willing to hire. c. shows the relationship between the wage rate and the quantity of labor that workers are willing to supply. d. shows the relationship between the price of output and the quantity of labor that workers are willing to supply.
Realization of gains from trade, entrepreneurial discovery, and investment are largely dependent on
a. competitive elections and political democracy. b. the presence of institutions and policies consistent with economic freedom. c. the use of tariffs and quotas to protect domestic businesses from competition with foreigners. d. the use of government planning to direct investments into worthwhile projects.
Between 1968 and 2008 the poorest 60% of the population experienced a _______ in its percentage share of the nation's wealth.
A. substantial decrease B. small decrease C. small increase D. substantial increase
Use the following table to answer the next question.OutputATC Plant 1ATC Plant 2ATC Plant 3ATC Plant 41,500$10$15$20$302,00081217252,50091015203,00012813183,50015611164,00018109144,50020127125,000241511105,50029191386,0003525159Plant sizes get larger as you move from Plant 1 to Plant 4. Which plant size would generate the least average total cost for the 3,000-4,000 level of output?
A. Plant 1 B. Plant 2 C. Plant 3 D. Plant 4