First, define the LM curve. Second, explain why it has its particular shape
What will be an ideal response?
The LM curve illustrates the combinations of the interest rate and level of output that maintain financial market equilibrium. The curve is upward sloping because as income increases, money demand will rise. This increase in money demand will cause an excess demand for money and an excess supply of bonds. Bond prices will fall and the interest rate will increase until equilibrium is restored.
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Refer to Figure 2-4. A movement from ________ is the result of advancements in plastic production technology
A) V to X B) Z to W C) W to X D) Y to Z
A monopolist will charge a lower price and produce more output than if it was operating in a competitive market
a. True b. False Indicate whether the statement is true or false
The deadweight loss that arises from a monopoly is a consequence of the fact that the monopoly
a. quantity is lower than the socially-optimal quantity. b. price equals marginal revenue. c. price is the same as average revenue. d. earns positive profits.
Developing countries tend to use ______ production methods.
a. labor-intensive b. capital-intensive c. highly technical d. completely automated