Assuming prices and wages are fully flexible, the aggregate supply curve will be:
A. upward sloping, but not vertical.
B. vertical.
C. horizontal.
D. downward sloping.
Answer: B
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In a certain economy, the components of aggregate spending are given by: C = 500 + 0.75(Y - T) - 500rI = 300 - 500rG = 400NX = 30T = 40 Given the information about the economy above, which expression below gives autonomous expenditures?
A. [1,230 - 1,000r] B. [1,200 - 1,000r] C. [1,200 - 1,000r] + 0.75Y D. [1,270 - 1,000r] + 0.75Y
An increase in nominal GDP could result from an increase in
i. production. ii. prices. iii. subsidies. A) ii only B) i and ii C) i, ii, and iii D) i only E) i and iii
The equilibrium in the prisoner's dilemma is a dominant strategy Nash equilibrium
Indicate whether the statement is true or false
Refer to Figure 15-11. What is the size of the deadweight loss prior to Verizon entering the market and what happens to this deadweight loss after Verizon does enter the market?
A) The deadweight loss of area C+D is converted to consumer surplus B) The total deadweight loss is the area D+F; D is converted to consumer surplus and F to producer surplus. C) The deadweight loss of area D is converted to consumer surplus. D) The deadweight loss of area D is converted to producer surplus.