Given that the economy is operating in the horizontal section of the aggregate supply curve in the simple Keynesian model, an increase in autonomous spending will ____________________ (assuming that the economy remains in the horizontal section of the aggregate supply curve)
A) increase Real GDP and raise the price level
B) decrease Real GDP and raise the price level
C) increase Real GDP and leave the price level unchanged
D) increase Real GDP and lower the price level
C
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In the United States, the emergence of the third-party payment system has:
A. led health care costs to increase over time. B. had almost no impact on health care costs. C. led people to consume less than the socially optimal level of health care. D. led health care costs to decrease over time.
Suppose the price of a can was $5.14. In this case, to maximize its profit, the firm illustrated in the figure above would
A) increase its production and would make an economic profit. B) not change its production and would make a normal profit. C) not change its production and would make an economic profit. D) increase its production and would incur an economic loss. E) not change its production and would incur an economic loss.
Does inoculation against chicken pox have both private and external benefits?
What will be an ideal response?
The value of consumption at each level of disposable personal income, all other determinants of consumption unchanged, is shown by the:
a. aggregate dissaving curve. b. consumption function. c. investment schedule. d. savings function.