In the IS-LM Model,we Can Be at Natural Real GDP

question 59

Multiple Choice

In the IS-LM model,we can be at natural real GDP with a low interest rate given the combination of ________ fiscal policy and ________ monetary policy.

• A)tight,tight
• B)tight,easy
• C)easy,tight
• D)easy,easy

Evaluate the reasons firms enter, stay in, or exit from a market.

Differentiate between average revenue, marginal revenue, and their importance to profit-maximizing firms.

Understand conditions under which the long-run supply curve can be perfectly elastic or slope upward.

Identify circumstances that display the rationale behind seemingly irrational market behaviors.

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Definitions:

Cable TV

A system of delivering television programming through coaxial or fiber-optic cables directly to subscribers' premises.

Club Good

A type of good that is excludable but non-rivalrous, meaning people can be prevented from using it, but one person's use does not reduce its availability to others.

Common Resources

Resources that are not owned by anyone, cannot be easily limited, and are available for use by more than one person or group.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning they can be consumed by one individual without preventing the consumption by others, and without leading to a decrease in available quantity.