A perfectly competitive market usually achieves economic efficiency because
In the short-run macro model, aggregate expenditures are found by which of the
following formulas?
a. AE = C + I + G + NX
b. AE = I + T + S + G
c. AE = C + I – T + NX
d. AE = C + I + G + NX
e. AE = C + I + G – NX
Which of the following will lower the present value of a bond?
Which of the following is true for a market that clears?
a. An excess supply of anything traded will lead to a fall in its price.
b. An excess demand of anything traded will lead to a fall in its price.
c. An excess supply of anything traded will lead to a rise in its price.
d. An excess demand of anything traded will not lead to a price change.
e. A high price will lead to a high demand.
Which of the following defines a recession?
a. Real GDP is increasing.
b. Real GDP is decreasing.
c. Real GDP is below its full employment level.
d. Unemployment is unusually low.
e. Employment growth is positive.
A microeconomist might study which of the following?
Which of the following correctly represents the budget deficit?
a. Tax revenue – government purchases
b. Tax revenue – government outlays
c. Government purchases – tax revenue
d. Government outlays – tax revenue
e. Government outlays – tax revenue – transfer payments
After a negative demand shock, what are the expected long-run adjustments?
a. Wages rise, price level rises, and output falls back to potential
b. Wages fall, price level rises, and output falls back to potential
c. Wages fall, price level falls, and output increases back to potential
d. Wages fall, price level rises, and output increases back to potential
e. Wages rise, price level falls, and output increases back to potential
Suppose that a non-discriminating monopolist lowers its price from $75 to $70 in order
to sell more output. Marginal revenue will
Because the Fed increased the money supply after the recession in the early 1990s, the
a. AD curve shifted to the left
b. economy returned to equilibrium GDP at a price level that was lower than the
original price level
c. price level continued to increase after the recession ended
d. price level fell back to its original level
e. long-run equilibrium GDP decreased