In Figure 4-6 above, with IS0 shifting to IS1 against the upward-sloping LM curve, crowding-out is the result that
A) income stays at YO3.
B) income rises to Y1 instead of to Y2.
C) income rises to Y1 instead of staying at YO3.
D) income rises to Y2 instead of to Y1.
D
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The rules for joining the Eurozone specified monetary economic conditions that the potential entrants had to achieve for admission. The convergence criteria of the ECB were:
A) moderate inflation, low unemployment, and adequate foreign currency reserves. B) no national debt and no current account deficits within the past five years. C) inflation rates roughly matching the lowest in the Eurozone, stable exchange rate peg for two years, and equivalent long-term interest rates. D) a stable political situation, high GDP growth rate, and moderate unemployment
When a perfectly competitive firm or a monopolistically competitive firm is making zero economic profit,
a. no firms will want to enter or exit. b. some firms will want to leave. c. some firms will want to enter. d. market demand shifts to the left. e. the price of the output will rise in the long run.