Refer to Figure 10.3. An increase in the real interest rate, with no other changes that affect aggregate expenditure, is best represented by ________ in panel (a) and ________ in panel (b)
A) a shift from AE2 to AE3; a shift from IS1 to IS2
B) a shift from AE3 to AE2; a shift from IS2 to IS1
C) a shift from AE2 to AE1; a movement from point B to point A
D) a shift from AE3 to AE1; a movement from point C to point A
C
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When the unemployment rate is ________ the natural unemployment rate, real GDP is ________
A) above; increasing B) above; above potential GDP C) below; above potential GDP D) below; increasing E) equal to; either equal to potential GDP or above potential GDP
Why can a monopoly not sell all that it desires at any given price?
What will be an ideal response?
Which of the following is one of the three major macroeconomic goals?
a. Maintain output per person at a relatively stable level. b. Maintain economic growth at a relatively stable level. c. Maintain employment of human resources at relatively low levels. d. Maintain prices at a relatively stable level.
A consumer's weekly income is $300 and the consumer buys 5 bars of chocolate per week. When income increases to $330, the consumer buys 6 bars per week. The income elasticity of demand for chocolate by this consumer is about:
A. 1. B. 0.5. C. 0. D. 2.