Refer to Figure 10.3. A decrease in the real interest rate, with no other changes that affect aggregate expenditure, is best represented by ________ in panel (a) and ________ in panel (b)
A) a shift from AE3 to AE2; a shift from IS2 to IS1
B) a shift from AE2 to AE3; a shift from IS1 to IS2
C) a shift from AE1 to AE2; a movement from point A to point B
D) a shift from AE1 to AE3; a movement from point A to point C
C
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According to the Clayton Act,
a. lawyers are given an incentive to reduce the number of cases involving cooperative arrangements. b. individuals can sue to recover damages from illegal cooperative agreements. c. the government was able to incarcerate the CEO of a firm for illegal pricing arrangements. d. private lawsuits are discouraged.
Refer to Figure 17.4. A long-run increase in productive capacity for the economy can be illustrated by a move from point
A. E to point A. B. A to point B. C. A to point C. D. C to point D.
Suppose that a major natural disaster destroys a large part of a country's capital stock but miraculously does not cause anybody bodily harm. What will happen to the real wage rate?
A. It will not change. B. It will rise. C. It will fall. D. It could rise or fall.
When the Fed sells bonds, the Fed:
A. reduces the reserves and the federal funds rate increases. B. increases the reserves and the federal funds rate increases. C. reduces the reserves and the federal funds rate decreases. D. increases the reserves and the federal funds rate decreases.