The AD curve is:
A. the combination of money and velocity growth rates that add up to a constant amount.
B. the combination of inflation rates and real growth rates that add up to a constant amount.
C. vertical at the economy's long-run real GDP growth rate.
D. horizontal at the economy's long-run inflation rate.
Answer: B. the combination of inflation rates and real growth rates that add up to a constant amount.
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An example of a public good or service provided by the federal government is
A) garbage collection. B) regulating gasoline prices. C) space exploration. D) determining the number of doctors admitted to medical school. E) setting each state government?s budget.
Based on the following table, the additional cost of producing the 60th unit of output is:
A. $5 B. $80 C. $250 D. $120 E. $8