The long-run aggregate supply curve is _____.
Fill in the blank(s) with the appropriate word(s).
vertical
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Refer to Figure f. A benefit function is plotted in Figure f. The letter B represents the:
A. risk premium of the consumption bundle.
B. expected utility of the consumption bundle.
C. certainty equivalent of the consumption bundle.
D. expected consumption.
Other things being equal, if you took money out of your savings deposit account and put it in a demand deposit account:
a. M1 would increase and M2 would increase. b. M1 would increase but M2 would not change. c. M1 would decrease and M2 would decrease. d. M1 would fall but M2 would not change.
At the most basic level, the distinguishing characteristic of government that makes it different from private firms is its ability to
a. use coercive force against adults to modify their behavior or force them to pay for a good or service. b. direct resources in a manner that serves the public interest rather than the private interest of individuals. c. produce goods and services that people value. d. escape the constraints imposed by scarcity.
A key assumption to ensure that domestic returns and foreign returns are in equilibrium is:
a. there are perfectly flexible prices. b. the quantity of money is fixed. c. there are no capital controls preventing the movement of capital. d. trade is not subject to any restrictions.