Multiple Choice
In the macroeconomic model developed in the book to describe the short- term behavior of the economy in the short run,
A) equilibrium must hold in product and labor markets.
B) the price level adjusts to clear goods markets.
C) output adjusts to spending disturbances.
D) all of the above.
E) a and b only.
Correct Answer:
Verified
Correct Answer:
Verified
Q2: The general shape of an aggregate demand
Q3: Slack exists even in a vigorous U.S.
Q4: Macroeconomists generally believe that year-to-year fluctuations in
Q5: If the marginal propensity to consume were
Q6: Consider a closed economy in which consumption
Q8: <sup>Let a small closed economy consist of
Q9: Of the many ways to measure GDP,
Q10: The short-run and long-run models used to
Q11: Consider a closed economy in which consumption
Q12: The marginal propensity to consume is<br>A) the