Any point on the aggregate demand schedule must also be
A) a point that clears the market for real money balances.
B) a combination of real interest rates and income where aggregate desired expenditures is in balance.
C) a point where money demanded is equal to money supplied.
D) all of the above.
D
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The above figure illustrates a perfectly competitive firm. Curve B represents the
A) MR curve. B) ATC curve. C) MC curve. D) AVC curve. E) AFC curve.
What are the defining features of Keynesian macroeconomics and what policies do Keynesian macroeconomists recommend?
What will be an ideal response?
When economists use the term Ceteris paribus, they are indicating that:
a. the relationship between two economic variables cannot be determined. b. the analysis is true for the individual but not for the economy as a whole. c. all other variables except the ones specified are assumed to be constant. d. their conclusions are based on normative economics rather than positive economic analysis.
Suppose a nation's 2010 nominal GDP was $972 billion and the general price index was 90. To make the 2010 GDP comparable with the base year GDP, the 2010 GDP must be:
a) deflated to $678 billion. b) deflated to $896 billion. c) inflated to $1080 billion. d) deflated to $1080 billion.