In the short-run macro model, what is the relationship between income and government purchases?
a. It is positive and stable.
b. It is positive but unstable.
c. It is negative and stable.
d. It is negative but unstable.
e. There is no relationship between the two variables.
E
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Use the following graph, where Sd and Dd are the domestic supply and demand for a product and Pc is the world price of that product to answer the next question.
Sd + Q is the product supply curve after an import quota is imposed. A quota of y?w will result in quota rent equal to areas
A. F + J. B. E + F + G + H + J. C. F + G + H + J. D. G + H.
What's a normal good to me might be
A) a normal good to you. B) an inferior good to you. C) a bad to you. D) any of the above to you.
Refer to Figure 2-8. Suppose Vidalia is currently producing 60 dozen orchids per period. How many roses is it also producing, assuming that resources are fully utilized?
A) 40 dozen roses B) 50 dozen roses C) 60 dozen roses D) 100 dozen roses
Compare the effectiveness of monetary policy in an open economy with mobile international capital with monetary policy in a closed economy. Why is it different? Use an appropriate diagram to illustrate your answer.
What will be an ideal response?