If aggregate demand curve shifts from AD2 to AD1, the full multiplier effect on real GDP will be a decrease from:
Refer to the figure above.
A. Q3 to Q1
B. Q2 to Q4
C. Q2 to Q1
D. Q3 to Q4
B. Q2 to Q4
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What did economists Robert Jensen and Nolan Miller determine must be true for a good to be a Giffen good, where the income effect is larger than its substitution effect?
What will be an ideal response?
How are the assets and liabilities changed for a bond dealer, the bond dealer's bank, and the Fed when the Fed buys $100,000 in bonds?
What will be an ideal response?
For each $1 of a tax cut, economists expect consumption to
a. decrease by $1. b. decrease by less than $1. c. increase by less than $1. d. increase by $1.
In a short-run production function before diminishing returns set in, both MPL and APL will have
A. negative slopes and MPL will lie above APL. B. positive slopes and MPL will lie above APL. C. positive slopes and APL will lie above MPL. D. negative slopes and APL will lie above MPL.