Let C = 200 + .8(Y-T), planned investment equals 150, and T equals 200 . If the equilibrium level of income is 2,000, then the level of government spending needed to make this true is
a. 210.
b. 250.
c. 50.
d. 10.
e. none of the above.
A
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In the market for labor:
A. individuals make up the demand. B. firms create the supply. C. the price in the market is the wage. D. individuals are never paid above their productivity.
Using the saving/investment approach to equilibrium, the equilibrium condition can be written as
A. C - S = I. B. C = S + I. C. C + S = I. D. C + I = C + S.
Suppose the firm or firms in the market for Good A face a downward-sloping demand curve, maximize profit by producing the quantity at which marginal revenue equals marginal cost, set the price higher than the marginal cost, and break even in long run equilibrium. Which one of the following market structures most likely exists for Good A?
A. Perfectly competition. B. Monopoly. C. Monopolistic competition. D. Oligopoly.
The Federal Open Market Committee began operating in:
A. 1914. B. 1929. C. 1936. D. 1913.