Refer to Figure 21-6. The loanable funds market is given in the figure above. If the current real interest rate is 5 percent, which of the following is true?
A) There is a surplus of loanable funds in the market.
B) The loanable funds market is in equilibrium.
C) The quantity of loanable funds being demanded in the market is less than $90 million.
D) There is a shortage of loanable funds in the market.
A
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A change in government spending can close an expansionary gap by shifting the short-run aggregate supply curve
a. True b. False Indicate whether the statement is true or false
The increase in productivity in the 2000's was most similar to that of the
A. 1960's B. 1970's C. 1980's D. 1990's
Assume an economy moves from E1 to e2 to E3. Which of the following statements accurately describes the situation shown?
a. The economy recovers from the recessionary gap by moving from E1 to e2.
b. The economy begins and ends in both short-run and long-run equilibrium.
c. The economy recovers from the recessionary gap by moving from E3 to e2.
d. The economy begins in long-run equilibrium but ends in a recessionary gap.
In the short run, a perfectly competitive firm ________ make an economic profit and ________ incur an economic loss
A) might; will never B) will never; might C) might; might D) will never; will never E) will definitely; will never