The FE line is vertical because the level of output at full employment doesn't depend on the
A) real wage rate.
B) level of employment.
C) marginal product of labor.
D) real interest rate.
Correct Answer:
Verified
Q12: Any change that reduces desired saving relative
Q13: Describe what happens to the FE line
Q14: Which of the following would shift the
Q15: The FE line
A)is horizontal.
B)is vertical.
C)slopes downward.
D)slopes upward.
Q16: The IS curve
A)is horizontal.
B)is vertical.
C)slopes downward.
D)slopes upward.
Q18: Which of the following would shift the
Q19: Identify changes in three variables that would
Q20: At a given output level,a temporary reduction
Q21: You have just read that the Federal
Q22: A rise in the price of a
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