Perfect competition ________ an efficient outcome because ________
A) achieves; total surplus is maximized
B) achieves; marginal benefit equals marginal cost
C) does not achieve; firms do not get to choose their price
D) does not achieve; firms produce goods with perfect substitutes
E) Both A and B are correct.
E
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Total planned real expenditures measured along the aggregate demand curve are made up of
A) consumption spending, factor payments, investment spending, and net export spending. B) consumption spending, income, government spending, and net export spending. C) consumption spending, saving, investment spending, and government spending. D) consumption spending, investment spending, government spending, and net export spending.
If there is surplus of loanable funds, then
a. the supply for loanable funds shifts right and the demand shifts left. b. the supply for loanable funds shifts left and the demand shifts right. c. neither curve shifts, but the quantity of loanable funds supplied increases and the quantity demanded decreases as the interest rate rises to equilibrium. d. neither curve shifts, but the quantity of loanable funds supplied decreases and the quantity demanded increases as the interest rate falls to equilibrium.