Refer to Figure 24-1. Ceteris paribus, a decrease in government spending would be represented by a movement from
A) AD1 to AD2. B) AD2 to AD1. C) point A to point B. D) point B to point A.
B
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U.S. potential GDP is the value of the goods and services produced in the United States ________
A. in the reference base year B. when the U.S. unemployment rate is zero C. when the U.S. economy is at full employment D. when the U.S. inflation rate is zero
Why does the supply curve of the perfectly competitive industry shift to the right whenever a new firm enters the industry?
What will be an ideal response?
A bond with a par value of $1,000 is traded at $1,500 . The coupon rate offered on the bond is 10 percent.The bond matures after a period of 5 years . The coupon paid to the bond holder after the end of the first year is:
a. $150. b. $100. c. $200. d. $50. e. $250
The first-order conditions for maximizing profits, ? = P × F(K, L) - wL ? rK, are:
A. P × {?F(K,L)/?K} - r = 0 and P × {?F(K,L)/?L} - w = 0. B. VMPK = r and VMPL = w. C. P × MPK ? r = 0 and P × MPL ? w = 0. D. All of the answers are correct.