Figure 9-1
?
In Figure 9-1,
A. the 45° line represents all points where spending equals output.
B. to the left of equilibrium GDP, inventories will rise.
C. to the right of equilibrium GDP, inventories will fall.
D. the level of equilibrium GDP equals potential GDP.
Answer: A
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According to the National Bureau of Economic Research, the "two most reliable comprehensive estimates of aggregate domestic production" are ________ when dating the beginning and ending of recessions
A) the level of employment and monthly payroll data B) industrial production and wholesale and retail sales C) gross domestic product and gross domestic income D) real manufacturing production and the natural rate of unemployment
Capital flight shifts the demand for loanable funds to the left
a. True b. False Indicate whether the statement is true or false
Paying efficiency wages means that wages are
a. above equilibrium, and profits are higher than otherwise. b. above equilibrium, and profits are lower than otherwise. c. below equilibrium, and profits are higher than otherwise. d. below equilibrium, and profits are lower than otherwise.
? A decrease in nominal incomes cause a:
A. ?rightward shift in the short-run aggregate supply curve. B. ?leftward shift in the short-run aggregate supply curve. C. ?rightward shift in the long-run aggregate supply curve. D. ?leftward shift in the long-run aggregate supply curve.