Which of the following explains why the money demand curve is downward sloping in the model of liquidity preference?
Which of the following would make real GDP increase? (select…
Which of the following would make real GDP increase? (select all that apply)
Consider the following aggregate demand and aggregate supply…
Consider the following aggregate demand and aggregate supply picture. Suppose the economy starts at point C. An adverse weather event would move the economy to which point in the short-run?
Suppose an adverse weather event moves the economy into a re…
Suppose an adverse weather event moves the economy into a recession at point B in the following picture. Which of the following would be true.
If the marginal propensity to consume is 3/4, then the margi…
If the marginal propensity to consume is 3/4, then the marginal propensity to save is 4/3.
The US entered World War II in 1941. The impact this had on…
The US entered World War II in 1941. The impact this had on the US economy is consistent with what would be predicted by the aggregate demand and aggregate supply model.
Consider an economy in recession. Suppose that the governmen…
Consider an economy in recession. Suppose that the government chooses to do nothing to try to get the economy out of the recession. The recession will still end as firms adjust their expectations about the future price level.
Economists refer to fluctuations in output as the “business…
Economists refer to fluctuations in output as the “business cycle” because movements in output are regular and predictable.
One of the key facts about recessions is that real GDP and u…
One of the key facts about recessions is that real GDP and unemployment tend to move in opposite directions.
Consider the following aggregate demand and aggregate supply…
Consider the following aggregate demand and aggregate supply picture. Suppose the economy starts at point C. An increase in the money supply would move the economy to which point in the short-run?