Which would make an individual firm's demand curve less elastic?
A. A reduction in the price of the firm's product.
B. The purchase of more efficient machinery.
C. A reduction in advertising expenditures by the firm.
D. Increased brand loyalty toward the firm's product.
Answer: D
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Use the following diagram to answer the next question.
Which of the following would cause a shift from G1 to G2?
A. A decrease in government spending B. An increase in government spending C. An increase in taxes D. A decrease in taxes
Which of the following is recorded in the U.S. balance of payments account?
I. foreign investment in the United States II. U.S. investment abroad III. the U.S. government deficit or surplus A) III only B) I and II C) I and III D) I, II and III
Aggregation is important because it allows many individual variables to be combined into one larger whole
a. True b. False
If the economy experiences an inflationary gap, a contractionary monetary policy will
A) increase interest rates and increase the bond prices. B) increase interest rates and decrease the bond prices. C) decrease interest rates and increase the bond prices. D) decrease interest rates and decrease the bond prices.