From the point of view of a particular country, capital inflows are:
A. purchases of foreign goods or services by domestic households or firms.
B. purchases of domestic assets by foreigners.
C. purchases of foreign assets by domestic households or firms.
D. purchases of domestic goods or services by foreigners.
Answer: B
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In the Keynesian model, if aggregate expenditures exceed aggregate output and inventories of firms fall, then the aggregate output and the business sector could be expected to:
a. increase output. b. decrease output. c. decrease investment. d. hire fewer workers.
On a Phillips curve diagram, a decrease in the rate of inflation, other things being equal, is represented by a(n):
A. upward shift of the Phillips curve. B. downward movement along Phillips curve. C. upward movement along the Phillips curve. D. downward shift of the Phillips curve.
Changes in demand have a large effect on the price of gold because the:
A. supply of gold is relatively inelastic. B. demand for gold is relatively inelastic. C. supply of gold is relatively elastic. D. demand for gold is relatively elastic.
The demand curve for a monopolistically competitive firm is
A) the same as the industry demand curve. B) more elastic than the demand curve of the perfectly competitive firm. C) less elastic than the demand curve of the perfectly competitive firm. D) horizontal.