In the Keynesian model, when the economy is not in long-run equilibrium, then the short-run equilibrium point is not on which curve?
A) SRAS
B) FE
C) IS
D) LM
B
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Joe and Steve are duopolists who each can follow two strategies: cooperate and jointly act like a monopolist, or don't cooperate (cheat) and act like duopolists. Their profits are as follows:
What will they do?
What will be an ideal response?
Refer to the above figure. If the relevant aggregate demand curve is AD1, then the economy is experiencing
A) full employment. B) an inflationary ga
If the MPC is .9 and government spending increases by $10 billion, GDP will rise by $_____ billion.
A. 9 B. 10 C. 90 D. 100
Saving is important for economic growth because
A. a higher saving rate increases investment spending. B. a higher saving rate will decrease the standard of living in the future. C. a higher saving rate reduces investment spending. D. more saving increases consumption immediately.