For an economy and aggregate demand equals

Assignment Help Microeconomics
Reference no: EM13684769

1. Which of the following characterizes the classical view of the economy?

A. The economy will "self-adjust" to full employment.

B. The economy is inherently unstable.

C. Prices and wages are not flexible.

D. None of these.

2. For an economy, aggregate demand equals:

1. Consumption plus investment plus government spending plus exports.

2. Consumption plus investment plus government spending plus (exports minus imports).

3. Consumption plus investment plus (taxes minus transfers) plus (exports minus imports).

 

4. Consumption plus investment plus government spending plus net exports (imports minus exports).

Reference no: EM13684769

Questions Cloud

Analyze the possible impact of poorly completed : Analyze the possible impact of poorly completed final reports on the prosecution of a case.
Regarding voluntary manslaughter : Regarding voluntary manslaughter, briefly identify three examples of provocations recognized by the law as adequate, and identify a provocation recognized by the law as inadequate.
What is prisoner rehabilitation : What is prisoner rehabilitation?
The vertical portion of the aggregate supply curve shows : The vertical portion of the aggregate supply curve shows that at full employment an increase in the price level will:
For an economy and aggregate demand equals : Which of the following characterizes the classical view of the economy? For an economy, aggregate demand equals:
Describe algebraically the inverse demand curve : d. Describe algebraically the inverse demand curve faced by the firm in this instance. Provide a graph that is consistent with your answer. Based on this graph, explain why this is called the kinked demand model. (Hint: the equation for th..
Prepare the trial balance of vernon yung : Journalize each transaction. Explanations are not required - post the journal entries to the T-accounts, using transaction dates as posting references in the ledger accounts. Label the balance of each account Bal.
What price should the firm charge : What price should the firm charge if it wants to maximize its profits in the short run?
Increase in the aggregate supply curve : Which of the following will most probable cause an increase in the aggregate supply curve?

Reviews

Write a Review

Microeconomics Questions & Answers

  What is the income elasticity for snickers chocolate bars

The salary in Arizona has decreased by 3% over the last 3 months. During this time, the sale of Snickers chocolate bars has decreased by 2% and gas sales decreased by 1%.

  To compute the number of firms in the industry

since the AC curve in the problem is upward-sloping everywhere, it is not possible to construct a zero-profit equilibrium given the assumptions of the problem this outcome requires a U-shaped AC curve.

  Equilibrium relative-supply and demand

Suppose that the market for radios is perfectly competitive and there is the simultaneous increase in supply and demand. What can be said about the new equilibrium relative to one before the shifts in supply and demand occurred?

  Define effect of the buisiness cycle on the multiplier

Effects of wage stickiness and the shape of the aggrate supple curve,effect of expectations on aggragate demand. Phillips Curve, natiral rate of unemployment, expacted inflation , the relationshipe between AS-Ad and the Phillipe Curve.

  Imports increase supply

2. Assume that imports increase supply. In terms of demand, supply and consumer surplus, why would consumers prefer more imports?

  Examine how prescription drugs affect demand and supply of

suggest how an economist would approach the problem of alcohol abuse. provide 2 possible solutions to this problem.

  Analyze the process of forecasting foreign-exchange rates

analyze the process of forecasting foreign-exchange rates and create a short list of best practices. explain your

  What is the most profitable pricing strategy

Suppose your marketing department does a survey of potential users and finds that these users place the following values on the two versions of your software If the numbers of home and commercial users are equal, and you cannot distinguish between ..

  The marginal cost of producing a bag

Are Lay's Potato Chips a normal or inferior good and Doritos a substitute or complement for Lay's, the marginal cost of producing a bag of Lay=s is 60 cents. How much should you charge per bag?

  How does the problem of limited and bundled choice in the

How does the problem of limited and bundled choice in the public sector relate to economic efficiency? Why are public bureaucracies alleged to be less efficient than private enterprises?

  Determine the possible relative market shares

Determine to the extent possible the relative market shares of these firms. Discuss the degree of concentration in the industry using CR4, other n-firm concentration ratios, H-H indices, etc.

  What is the present value of the bond

Suppose that there is a bond that will pay $500 for each of the next three years (the first payment is one year from now). At the end of three years the bond matures and the holder receives the $10,000 face value of the bond. If the market ra..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd