The aggregate demand curve shows the relationship between short-run equilibrium output and the:

A. inflation rate.
B. unemployment rate.
C. real interest rate.
D. nominal interest rate.


Answer: A

Economics

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If the underground economy is sizable, then GDP will:

a. understate the economy's performance. b. overstate the economy's performance. c. fluctuate unpredictably. d. accurately reflect this subterranean activity.

Economics

Which of the following grew rapidly during the years following the passage of the Medicare and Medicaid programs?

a. the share of healthcare expenditures financed by third parties b. the prices of healthcare relative to the prices of other goods and services c. expenditures on healthcare as a share of the economy d. all of the above

Economics

Figure 7-8


Of the graphs in Figure 7-8, which represents total cost?

a.
1

b.
2

c.
3

d.
4

Economics

The most fundamental function of prices in a market economy is to provide

A. Information about the relative scarcities of resources and goods and services. B. The data necessary to calculate rates of inflation. C. The basis for the calculation of sales tax. D. Maximum profits to producers.

Economics