Consider the above figure. If the aggregate demand curve rose from AD1 to AD3, our nation would be experiencing
A. falling prices.
B. a recessionary gap.
C. unemployment.
D. an inflationary gap.
Answer: D
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In the figure above, the SLF curve is the supply of loanable funds curve and the PSLF curve is the private supply of loanable funds curve. If there is no Ricardo-Barro effect, the figure shows a situation in which the government has a budget
A) deficit of $0.2 trillion. B) deficit of $1.6 trillion. C) surplus of $1.4 trillion. D) surplus of $0.2 trillion. E) surplus of $1.8 trillion.
As we move down a particular indifference curve, if the "marginal rate of substitution" between the two goods does not change we can conclude that the two goods are:
A) perfect substitutes. B) perfect complements. C) totally unrelated. D) both inferior goods.
Kristi and Rebecca sell lemonade on the corner for $0.50 per cup. It costs them $0.10 to make each cup. On a certain day, their producer surplus is $20 . How many cups did Kristi and Rebecca sell?
a. 40. b. 200. c. 8. d. 50.
The marginal propensity to consume is equal to:
a) Total spending / total consumption b) Total consumption / total income c) Change in consumption / change in income d) Change in consumption / change in savings