Refer to the diagram for a private closed economy. Aggregate saving in this economy will be zero when:
A. C + I g cuts the 45-degree line.
B. GDP is $180 billion.
C. GDP is $60 billion.
D. GDP is also zero.
C. GDP is $60 billion.
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If a rise in the price of good X causes the quantity demanded of good X to fall, then
a. the Engel curve for good X is downward sloping. b. the (ordinary) demand curve for good X is downward sloping. c. the demand for good X is elastic. d. good X must be a Giffen good.
Total utility is the benefit received from consuming an extra unit of a good
Indicate whether the statement is true or false
The federal funds rate is the interest rate on short-term loans made by:
A. the Federal Reserve to commercial banks. B. commercial banks to other commercial banks. C. the federal government to commercial banks. D. the Federal Reserve to the federal government.
(Consider This) The Native American arts and crafts story illustrates the twin ideas of:
A. product differentiation and monopolistic competition. B. excess capacity and monopolistic competition. C. local oligopoly and strategic behavior. D. pure monopoly and price discrimination.