What is measured on the horizontal axis on the aggregate demand graph?
A. unemployment
B. nominal income
C. the price level
D. real GDP per year
Answer: D
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The ratio of non-performing loans to total loans is a measure of a bank's __________ risk
A) credit B) leverage C) interest rate D) liquidity
The goal of equity is fundamentally a positive issue
a. True b. False
Keynes recognized that if the economy were in a slump for a sufficiently long period of time:
A. spending and investment would eventually recover. B. speculative bubbles would burst. C. the economy would never bounce back. D. interest rates would remain permanently high.
In the above figure, what happens to the firm's optimal level of output if the price it receives for its product decreases from P4 to P3?
A. Output increases. B. Output stays the same. C. Output decreases. D. There is not enough information provided to know what happens to output.