Which of the following explains why RGDP demanded increases when the price level falls?
a. the subsequent increase in exports due to increased production
b. the corresponding increases in interest rates, which promotes more saving
c. the subsequent decrease in imports due to increased purchasing power
d. the corresponding increase in the real value of households’ money holdings
d. the corresponding increase in the real value of households’ money holdings
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Assume that the economy is presently in equilibrium. A decline in the interest rate
a. increases planned investment, aggregate demand, and equilibrium income. b. increases unplanned investment, reducing aggregate demand and equilibrium income. c. increases unplanned investment, increasing aggregate demand and equilibrium income. d. increases money demand, the money supply, aggregate demand, and equilibrium income.
The classic example of a public good is a lighthouse. Explain why lighthouses were provided by government
In the short run, a monopolistically competitive firm calculates that marginal cost is $6.00, average total costs are $4.00, and marginal revenue is $3.00. The firm is charging a price of $6.00 and producing 200 units of output. How much profit is the
firm making? What output recommendation would you make as the company economist? What will be an ideal response?
In the 1990s, our productivity grew by about ____ percent.
A. 16 B. 21 C. 32 D. 38