Proponents of deficit reduction argue that the principal effect will be an
a. outward shift of the aggregate supply curve.
b. inward shift of the aggregate supply curve.
c. outward shift of the aggregate demand curve.
d. inward shift of the aggregate demand curve.
a
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The recession that set in after December 2007 can be attributed to: a. an increase in expenditure on war
b. a decline in home prices and an increase in foreclosures. c. an increase in terrorist activities. d. crop failures around the world. e. an increase in oil prices in the international market.
The averaging equation of elasticity solves the problem of
a. whether price or quantity is in the numerator b. which price or quantity to use as a base for calculating percentage changes c. whether to use quantity supplied or demanded d. removing the negative sign e. whether to use income or price in the denominator
The value of money
a. remains constant during periods of inflation. b. varies inversely with the general price level. c. varies directly with the general price level. d. varies indirectly with output.
A rational investor will always purchase the bond that pays the highest real interest rate
a. True b. False Indicate whether the statement is true or false