When an inflationary gap exists, the job prospects of new college graduates are
A. very dim.
B. somewhat encouraging.
C. worse in comparison to a recessionary gap.
D. excellent.
Answer: D
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"If the currency drain increases, the monetary base decreases." Explain whether the previous statement is correct or incorrect
What will be an ideal response?
If total income remains the same but profits fall and real wages rise, the aggregate demand curve will most likely:
A. become flatter. B. become steeper. C. shift to the left. D. shift to the right.
According to the law of demand
A) price and quantity demanded move in the same direction. B) price and quantity demanded move in opposite directions. C) ceteris paribus does not apply. D) price and quantity demanded are unrelated.
Compared with a monopolist, the demand curve faced by a monopolistically competitive firm is
A) more elastic. B) more inelastic. C) perfectly elastic. D) perfectly inelastic.