On the 45-degree line diagram, the 45-degree line shows points where real aggregate expenditure equals
A) nominal GDP. B) unplanned investment.
C) real GDP. D) planned investment.
C
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The risk-return indifference curves for a risk-neutral investor are:
A) vertical lines. B) straight lines with slope equal to one. C) horizontal lines. D) upward sloping lines that are bowed downward.
If aggregate quantity supplied is greater than aggregate quantity demanded at a particular price level, then a
A) shortage exists and consumers will bid the price level up. B) surplus exists and consumers will bid the price level up. C) surplus exists and the price level will decline. D) shortage exists and the price level will decline. E) c and d
Which of the following most likely includes unreported income from illegal sources?
a. underground economy b. nonmarket transactions c. externalities d. leisure
Basically, the marginal principle helps us to evaluate the factors involved in taking an action or if doing something is worth the effort.
Answer the following statement true (T) or false (F)