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The classical economists held that the rate of interest would equate planned investment and planned saving, so that all saving would eventually be invested.TrueFalse
The value of the marginal propensity to consumea. can exceed 1b.is always between 0 and 1c. can be less than 0d. is always greater than 1
The aggregate demand curve is the sum of individual demand curves in the economy.TrueFalse
Constant-dollar GDP and real GDP are the same thing.TrueFalse
In national income accounting, grain fed to a hog at a commercial hog farm is considered a(n)a. final goodb. intermediate goodc. consumer goodd. capital consumption allowance
Show in an IS-LM and AS-AD graph the effects of an increase in government spending. Next, using the same graph, show how the economy will transition back to the natural rate of unemployment. Explain intuitively how this transition takes place.
Citrus Speculation and Forecasting, Inc., has been recruited by a private consortium of orange growers to predict what will happen to the price and output of oranges under the conditions below.
Compute the change in total income which is P times Q moving
Under which circumstances is it best for a speculator seeking a capital gain to purchase bonds and If the market interest rates on other similar bonds decreases, you can be sure that?
Assume demand shifts out to the right by 10 percent, the elasticity demand is 1.5 and the elasticity of supply is .5, By how much will price change.
How does an economy achieve macroeconomic equilibrium? What affect does a high level of inflation have on macroeconomic equilibrium?
You have been hired to work with a resort owner in Northern Minnesota. This resort owner runs a very small operation catering to mostly people who like to fish.
Drugs 'R Us operates a mail order pharmaceutical business on West Coast. The company receives an average of $325,000 in payments a day.
Illustrate what would each political philosophy of utilitarianism, liberalism, and libertarianism likely suggest should be done in this situation.
Illustrate what does this suggest about the natural free trade pattern of specialization in Argentina. i.e. would we expect that it would be a net importer or exporter.
Suppose the market for widgets can be described by the following equations: What is the equilibrium price and quantity?
How much does the gross price increase in each market
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