Answer the following statements true (T) or false (F)
1. The aggregate expenditures schedule relates total spending with the price level, while the aggregate demand schedule relates total demand for output with income.
2. The equivalent of the aggregate supply curve in the aggregate expenditures model is the 45-degree line.
3. If the price level increases, then the aggregate expenditures schedule will shift down and the aggregate demand curve will shift to the left.
4. The aggregate expenditures model and the immediate-short-run aggregate supply have similar assumptions regarding the economy's price level.
1. False
2. True
3. False
4. True
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Suppose that a currency's value is found to be overvalued by using purchasing power parity. Then
A) the currency will appreciate in the future but we don't know when. B) we know when and how much the currency will depreciate. C) the interest rate in the country will change in order to restore purchasing power parity. D) we know when and how much the currency will appreciate. E) the currency will depreciate in the future but we don't know when.
The fees paid to a mutual fund manager is called:
a. fund fee. b. service fee. c. load. d. dividend. e. agency fee.
The best example of a command socialist economy is:
A) Russia. B) China after 1979. C) Cuba. D) the United States.
Exhibit 6A-2 Consumer Equilibrium
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Given the budget lines and indifference curves shown in Exhibit 6A-2, points D, A, and E yield:
A. more total utility than point B. B. more total utility than points B and F. C. less total utility than points B and C. D. equal total utility to points B, F, and C.