At every point on the IS curve, the level of income on the horizontal axis equals
A) planned autonomous spending.
B) planned autonomous spending times the multiplier.
C) planned autonomous spending divided by the multiplier.
D) planned expenditures times the multiplier.
B
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Use the NBER data in Table 8.1 in the textbook on U.S. business cycle turning points to calculate:
a) the shortest business cycle from peak to peak; b) the shortest business cycle from trough to trough; c) the longest business cycle from peak to peak; and d) the longest business cycle from trough to trough.
If the FOMC orders the sale of T-bills in the open market, then bank reserves are
A. decreased, but the money supply will remain unchanged. B. decreased, and a multiple contraction of the money supply will occur. C. increased, but the money supply will remain unchanged. D. increased, and a multiple expansion of the money supply will occur.
Other things equal, we would expect the labor demand curve of a monopolistic seller to:
A. decline more rapidly than that of a purely competitive seller. B. decline less rapidly than that of a purely competitive seller. C. decline at the same rate as that of a purely competitive seller. D. be more elastic than that of a purely competitive seller.
An advantage of a corporation is
A. the fact that ownership and control are never separated. B. the ability to raise large sums of financial capital. C. the fact that the corporation is dissolved when one of its owners dies. D. unlimited liability on the part of shareholders.