Business cycles are linked to the interaction between:
a. the foreign exchange rate and the balance of payments account.
b. the aggregate demand and aggregate supply curves.
c. the demand and supply curves for a particular good.
d. the substitution and the wealth effect.
e. the long-run aggregate supply curve and the aggregate resource curve.
b
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National income is equal to ________.
A. rent + transfer payments + interest + wages B. gross investment - depreciation + indirect business taxes - net foreign income C. wages + rent + interest + profits and losses D. net investment + depreciation + net exports + net foreign income
In the above figure, if output is 10 units, then the total deadweight loss is
A) $5. B) $10. C) $20. D) $60.
Michael Jordan has more athletic ability than most individuals. Thus, he is more productive at most tasks involving physical skill. Explain why then, it is more efficient for Michael Jordan to pay someone else to mow his lawn
What will be an ideal response?
If the liquidity effect is smaller than the other effects, and the adjustment to expected inflation is immediate, then the
A) interest rate will fall. B) interest rate will rise. C) interest rate will fall immediately below the initial level when the money supply grows. D) interest rate will rise immediately above the initial level when the money supply grows.