Employing the New Keynesian concepts of "macroeconomic externality" and "coordination failure":
if nominal aggregate demand and marginal cost fall by the same proportion, society ________ afford to compensate firms for the profit they lose when they ________.
A) can, bear the menu costs of changing prices
B) can, hold prices constant
C) cannot, bear the menu costs of changing prices
D) cannot, hold prices constant
A
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When the price level goes up, the purchasing power of the dollar
A) varies directly with the value of the euro. B) remains constant. C) also increases. D) falls.
The sum of consumption and saving is called _____
a. net investment b. net income c. personal income d. disposable income e. transfer payment
The price of a bond with a maturity date one time period into the future is equal to its face value
a. multiplier by 1 - r. b. multiplied by 1 + r. c. divided by 1 + r. d. divided by 1 - r.
If Y = $100 billion, then C = $50 billion, and I = $60 billion. What will autonomous investment be when Y = $200 billion and C = $100 billion?
A. $50 billion B. $60 billion C. $100 billion D. $120 billion