Refer to the information above. The "simple" accelerator model, first derived by American economist J.M. Clark in 1917, comes from setting
A) j = 0.
B) j = 1.
C) v* = 0.
D) v* = 1.
B
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Describe the connections between rising income and environmental and social indicators. Which indicators improve and which worsen as national income rises?
What will be an ideal response?
The law of demand is graphically depicted as a(n)
a. vertical demand curve b. horizontal demand curve c. downward-sloping demand curve d. upward-sloping demand curve e. curved demand line
Which of the following best describes how a perfectly competitive industry would respond to a sudden increase in popularity of the product? The market demand curve would shift to the right, leading to:
A. no change in the short-run equilibrium price, and a higher long-run equilibrium quantity. B. a higher equilibrium price in the short run and entry into the market in the long run. C. a higher equilibrium price in the short run and a permanent increase in economic profit. D. a lower short-run equilibrium price due to the entry of firms into the market.
Ceteris paribus, if the average price level falls, then the _____ effect will result in _____ in the purchases of goods and services.
A. Real balances; an increase B. Foreign trade; a decrease C. Interest rate; a decrease D. Cost; an increase