If expected future incomes fall, this causes the nation's current:
a. Aggregate demand to fall, the average price level to fall, and real GDP to rise.
b. Aggregate supply to rise, the average price level to rise, and real GDP to rise.
c. Aggregate demand to rise, the average price level to rise, and real GDP to rise.
d. Aggregate supply to fall, the average price level to rise, and real GDP to fall.
e. Aggregate demand to fall, the average price level to fall, and real GDP to fall.
.E
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Which of the following is the best example of a perfectly competitive firm?
A) a Taco Bell restaurant B) United Parcel Service (UPS) C) a corn farmer in Illinois D) the Ford Motor Company
According to classical economists, if we use the quantity theory of money equation P = MV / Q, and the growth rate of M equals the Q growth rate,
a. the price level increases b. the price level decreases c. the price level remains unchanged d. velocity is necessarily increased e. M1 is decreased
If the economy is experiencing less than full-employment, the Keynesian school recommends that the government:
A. do nothing to stimulate the economy. B. undertake fiscal policy to stimulate aggregate demand. C. undertake fiscal policy to stimulate aggregate supply. D. balance the budget to stimulate aggregate demand.
Which of the following integration types aims at reducing transaction costs?
A. Cointegration B. Vertical integration C. Conglomerate integration D. Horizontal integration