Economic models like the AD-AS model tell us:
A. how to determine which economic variables are changing.
B. what to expect if we know what is happening.
C. exactly what is happening.
D. nothing useful about the real world.
Ans: B. what to expect if we know what is happening.
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In the table above, what does the private sector surplus equal?
A) $500 billion B) $350 billion C) $150 billion D) $0
Globalization of markets can reduce oligopoly power by
a. increasing the number of competitors b. increasing market prices c. bypassing antitrust legislation in a particular country d. identifying new markets for goods and services e. reducing the economies of scale
At low levels of employment, the Keynesian aggregate supply curve
a. is downward sloping b. is upward sloping c. is vertical d. is horizontal e. is zero
If an increase in the price of good X leads to a decrease in the demand for good Y, then:
A. good X and good Y are substitutes. B. good X and good Y are normal goods. C. good X and good Y are complements. D. good X is a normal good and good Y is an inferior good.