The IS curve shows the combinations of output and the real interest rate for which
A. the goods market is in equilibrium.
B. an increase in output will cause the market-clearing interest rate to be bid up.
C. the labor market is in equilibrium.
D. the financial asset market is in equilibrium.
Answer: A
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How did the existence of the baby boom generation change demand in the United States?
a. Demand was raised for different goods with each age the baby boomers reached. b. After they reached the teenage years, the baby boomers were integrated into the society and no longer affected demand. c. People were poorer because they had so many children, so demand was lowered. d. The baby boomers did not raise demand until they became adults, when they had their own money to spend.
A college student who is enrolled in school full-time and not seeking employment is considered: a. out of the labor force
b. unemployable, and not counted in official statistics. c. employed in leisure. d. underemployed.