Fixed exchange rates are rates set by government decisions and maintained by government actions.

If you know what marginal cost is, then you should know what marginal revenue is. It's the change in

a. total profit generated by a change in quantity b. price generated by a change in quantity c. total revenue generated by a change in quantity d. output generated by a $1 change in price e. average revenue generated by a change in quantity

Answer the following questions true (T) or false (F)

1. Suppose real GDP is $13 trillion and potential real GDP is $13.5 trillion. If Congress and the president increase government purchases by $500 billion, then the economy will be brought to equilibrium at potential real GDP. 2. In the case of an upward-sloping aggregate supply curve, the change in real GDP brought about by a change in government spending will be less than that predicted by the simple government purchases multiplier. 3. Crowding out refers to a decrease in government purchases as a result of an increase in private expenditures.