Figure 10-18
Beginning in from long-run equilibrium at point E1, the aggregate demand curve shifts to AD2. The economy's path to a new long-run equilibrium is represented by a movement from
a.
E3 to E1 to E2.
b.
E1 to E3 to E2.
c.
E2 to E1 to E2.
d.
E1 to E2 to E3.
d
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When effects are irreversible, it may be sensible to treat their possible causes even if they cannot be identified with certainty
Indicate whether the statement is true or false
For purposes of analyzing the money stock and its relationship to relevant economic variables, money is best thought of as
a. those items that can be readily accessed and used to buy goods and services. b. currency only. c. currency plus all bank accounts. d. currency plus all bank accounts plus bonds.
The winner's curse occurs:
A. only in second-price, sealed-bid auctions. B. only in English auctions. C. in a common-values auction. D. in a private-values auction.
Lucinda buys a new GPS system for $250. She receives consumer surplus of $75 from the purchase. What value does Lucinda place on her GPS system?
A) $75 B) $175 C) $250 D) $325