In the ________ zone, movement in AD to the right will increase both the output level and the price level, while a movement in AD to the left would decrease both the output level and the price level.
a. Keynesian
b. neoclassical
c. intermediate
d. equilibrium
c. intermediate
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In the Edgeworth Box, we can set one price to 1 and only need to solve for the other price because only relative prices matter for individual choice when income is drawn from endowments.
Answer the following statement true (T) or false (F)
Which of the following will not tend to shift the consumption schedule upward?
A. A currently small stock of durable goods in the possession of consumers. B. The expectation of a future decline in the consumer price index. C. A currently low level of household debt. D. The expectation of future shortages of essential consumer goods.
A small country is an international borrower and its domestic supply of loanable funds increases. Consequently, the equilibrium quantity of loanable funds used in the country ________ and the country's international borrowing ________
A) does not change; decreases B) does not change; does not change C) does not change; increases D) increases; does not change
The ease with which an asset can be converted into the medium of exchange is called
a. liquidity. b. velocity. c. the equation of exchange. d. the money multiplier.