Which of the following is most likely to happen if aggregate consumption in an economy falls steeply?
A) Asset prices rise. B) Mortgage defaults fall.
C) Labor supply falls. D) Firm bankruptcies rise.
D
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If the marginal leakage rate is 0.2, then a $300 fall in autonomous planned expenditures will shift the IS curve leftward by the amount of
A) $300. B) $1500. C) $75. D) $600.
At the equilibrium price:
A. quantity supplied may exceed quantity demanded or vice versa. B. there are no pressures on price to either rise or fall. C. there are forces that cause price to rise. D. there are forces that cause price to fall.
What is marginal revenue?
What will be an ideal response?
Which of the following is not an example of inflation causing a redistribution of income because the inflation was unanticipated?
A) A firm signs a 3-year contract with a union based on a 2 percent anticipated rate of inflation per year, and the actual rate of inflation ends up being 7 percent per year. B) A worker receives a raise in salary that is less than the rate of inflation, because management under-predicted inflation. C) Firms have to hire an extra worker to change prices in its store because of inflation. D) A bank collects a lower amount of interest from a loan because inflation was under-predicted.