In a classical model
A) equilibrium real GDP is demand determined.
B) equilibrium real GDP is neither determined by aggregate supply nor by aggregate demand.
C) equilibrium real GDP is determined by both aggregate supply and aggregate demand.
D) equilibrium real GDP is supply determined.
D
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Widespread assumptions about the first transatlantic railroad did NOT include:
a. that government support was as essential. b. that profits to the nation would be enormous. c. that private investors would be easily compensated for any risk. d. that transatlantic crossing via rail would take a fraction of the time of a clipper ship passage.
If Mexico experiences a period of stable prices while the United States experiences rapid inflation, what will happen in the United States?
a. an increase in U.S. imports b. an increase in U.S. exports c. a decrease in U.S. imports d. an increase in U.S. net exports
Given the strict quantity theory of money, if the quantity of money were decreased by 50 percent, prices would
What will be an ideal response?
Entrepreneurs in purely competitive industries:
A. have no incentive to innovate because in the long run they will earn no economic profits. B. innovate to lower operating costs and generate short-run economic profits. C. utilize pricing strategies to generate short-run economic profits. D. rarely try to innovate because of a lack of financial resources.