If the economy is characterized by a certain and stable LM curve, then ________ target produces ________ fluctuations in aggregate output
A) an interest rate; smaller
B) a money supply; smaller
C) a money supply; larger
D) an exchange rate; larger
B
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Dissaving occurs when
A. income is greater than saving. B. saving is greater than the interest rate. C. saving is greater than consumption. D. income is less than consumption.
When the economy is in long-run equilibrium, there will be
A) no unemployment. B) cyclical unemployment only. C) frictional and structural unemployment. D) cyclical and seasonal unemployment.
The above figure shows a perfectly competitive firm. If the market price is $15 per unit, the firm
A) will definitely shut down to minimize its losses. B) will stay open to produce and will make zero economic profit. C) will stay open to produce and will incur an economic loss. D) will stay open to produce and will make an economic profit. E) might shut down but more information is needed about the fixed cost.
All economically efficient production plans are technologically efficient.
Answer the following statement true (T) or false (F)