The liquidity-money (LM) curve shows the alternative combinations of interest rates and real income that clears the money market
Indicate whether the statement is true or false
TRUE
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A rise in the oil price will
A) shift the supply curve of gas to the left. B) shift the supply curve of gas to the right. C) leave the supply curve of gas unchanged. D) Not enough information is provided.
Which of the follow is not a property of the aggregate demand curve?
A. It shows the relationship between the overall price level and the level of total demand. B. It shows the price level on the vertical axis and output on the horizontal axis. C. The aggregate demand curve slopes downward. D. It shows the relationship between the overall price level and level consumption.
John Steinbeck's Cannery Row describes a character who takes his own life because of poor job prospects. If he was an unemployed person who gave up looking for work, he would be considered
a. chronically unemployed b. a discouraged worker c. a member of the labor force d. a Bureau of Labor Statistics economic casualty e. cyclically unemployed
Nicole's income is $1,000 per month. She spends all of it on shoes (S) and books (B). Shoes cost $50 and books cost $25. Her marginal rate of substitution for shoes with books is MRSSB = 2B/3S. Illustrate her utility-maximizing combination of shoes and books and draw her price-consumption curve if the price of books rises to $30.
What will be an ideal response?