The simplified Keynesian model
A. holds the price level constant.
B. assumes investment and saving are always equal.
C. assumes unemployment is unrelated to real GDP.
D. holds real GDP constant.
Answer: A
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Jacob buys less soda when the price of soda rises 10 percent, while the prices of all other goods also rise 10 percent. Jacob is
A) behaving in accordance with classical economic theory. B) worrying too much about a coming recession. C) suffering from money illusion. D) paying too much attention to changes in relative prices.
If real GDP is 100 in year 1, and grows at a rate of 3 percent per year for 9 years, what will the GDP be in 9 years?
What will be an ideal response?
Liz has a comparative advantage in ________ because ________
A) smoothies; she can produce more smoothies per hour than Joe can B) salads; she can produce more salads per hour than Joe can C) smoothies; her opportunity cost of producing smoothies is lower than Joe's D) both goods; she can produce more of both goods per hour than Joe can E) salads; her opportunity cost of producing salads is lower than Joe's
Refer to Table 4-13. The equations above describe the demand and supply for Aunt Maud's Premium Hand Lotion. The equilibrium price and quantity for Aunt Maud's lotion are $20 and 30 thousand units
What is the value of economic surplus in this market? A) $600 thousand B) $1,050 thousand C) $1,500 thousand D) $2,100 thousand