If the economy is on the LM curve, but is to the right of the IS curve, then the ________ market is in equilibrium, but aggregate ________ exceeds aggregate ________
A) goods; output; demand
B) goods; demand; output
C) money; output; demand
D) money; demand; output
C
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Which of the following statements is true about revenue?
A) Revenue is calculated by dividing the price per unit by the number of units sold. B) The terms "revenue" and "profit" can be used interchangeably. C) A firm's revenue will increase as its costs increase. D) Revenue is the total amount received for selling a good or service.
In the four-part diagram used to construct the IS curve, the upper right-hand graph depicts
A) the IS curve. B) the relationship between the interest rate and autonomous planned spending. C) determination of real income by the saving function and the demand for autonomous planned spending function. D) none of the above.
Goods produced for consumption in 2003 but remain unsold in 2003 become
a. intended inventories b. unwanted inventories c. aggregate expenditure d. transitory investment e. intended investment
When firms advertise their products, they are attempting to:
A. shift the supply curve of the product to the right. B. shift the supply curve of the product to the left. C. shift the demand for the product to the right. D. shift the demand for the product to the left.