In the self-correcting AD-AS model, the economy's short-run equilibrium position is indicated by the intersection of which two curves?
a. Short-run aggregate supply and long-run aggregate supply
b. Short-run aggregate supply and aggregate demand.
c. Long-run aggregate supply and aggregate demand.
d. Long-run aggregate demand and short-run personal consumption expenditures curve.
e. Short-run aggregate demand and long-run personal consumption expenditures curve.
b
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When looking at economic growth in a country, the distribution of output and income
A) is shared equally. B) is skewed toward the lowest quintile of the population. C) generally follows predictable patterns. D) is not taken into consideration.
In a two-period model with default, the nation defaults on its debt in the current period if
A) the market interest rate is high, the cost of defaulting is low, and national debt is high. B) the market interest rate is low, the cost of defaulting is low, and national debt is high. C) the market interest rate is high, the cost of defaulting is high, and national debt is low. D) the market interest rate is low, the cost of defaulting is high, and national debt is low.
Which of the following is a property of a typical indifference curve?
a. upward sloping b. bowed away from the origin c. does not intersect another indifference curve d. a lower one is preferred to a higher one
If disposable income is $400 billion, autonomous consumption is $60 billion, and MPC is 0.8, what is the level of saving?
A. $20 billion. B. $210 billion. C. $380 billion. D. $590 billion.