Using the output at which the aggregate expenditure curve intersects the 45-degree line, we can identify
A. A consumption shortfall at the intersection point.
B. Full employment to the left of the intersection point if there is a recessionary gap.
C. Equilibrium (macro) at the intersection point.
D. Dissaving to the right of the intersection point.
Answer: C
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The following table provides nominal exchange rates for the U.S. dollar.CountryForeign currency/dollarDollar/foreign currencyPoland(Zloty)4.367.229South Africa(rand)6.944.144Based on these data, the nominal exchange rate equals approximately ________ zloty per South African rand or, equivalently, ________ rand per Polish zloty.
A. 0.021; 47.640 B. 0.629; 1.590 C. 47.640; 0.021 D. 1.590; 0.629
A perfectly competitive industry must have a perfectly elastic long-run supply curve
a. True b. False Indicate whether the statement is true or false
In the classical model, desired saving
A. is equal to desired investment. B. is less than desired investment. C. exceeds investment. D. is inversely related to real income.
The amount by which aggregate expenditures exceed those associated with the full- employment level of domestic output can best be described as:
A. A recessionary expenditure gap B. An inflationary expenditure gap C. The multiplier D. The average propensity to save