Which aggregate expenditure schedule AE in the diagram for a private closed economy implies the largest MPC, assuming investment is the same at each level of income?
A. AE 4 .
B. AE 3 .
C. AE 2 .
D. AE 1 .
A. AE 4 .
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The amount by which an aggregate expenditures schedule must shift upward to achieve the full-employment real GDP is a(n)
A. recessionary expenditure gap. B. negative net export gap. C. expenditure multiplier gap. D. inflationary expenditure gap.
In the long-run ISLM model and with everything else held constant, the long-run effect of a contractionary fiscal policy is to ________ real output and ________ the interest rate
A) not change; not change B) decrease; decrease C) decrease; not change D) not change; decrease
A stock market
A. guarantees that a seller of a stock will get the price at which the stock was purchased. B. is used only to sell new stock issues from corporations and not to transfer existing stocks. C. is used only to sell stocks, not to buy stocks. D. gives an individual a chance to invest in stocks without committing funds for long periods of time.
Which of the following will reduce the likelihood of effective collusion among oligopolistic producers?
a. low entry barriers into the market b. a production of a homogenous product c. a stable market demand for the product d. a highly inelastic market demand for the product