A leading variable ________
A) reaches a peak or trough before the turning point of the business cycle
B) reaches a peak or trough after the turning point of the business cycle
C) reaches a peak or trough at the same time as the turning point of the business cycle
D) all of the above
E) none of the above
A
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The long-run aggregate supply curve occurs at the level of real GDP consistent with
A) no inflation. B) the natural rate of unemployment. C) individuals' tastes and preferences. D) low levels of inflation.
If a firm is due to be paid in euros in two months, to hedge against exchange-rate risk the firm should ________ foreign exchange futures ________
A) sell; short B) buy; long C) sell; long D) buy; short
Business inventories tend to fall after an unexpected increase in aggregate demand
a. True b. False Indicate whether the statement is true or false
A corrective tax equal to the external cost imposed on third parties levied on polluters will: a. eliminate all pollution
b. increase the level of pollution. c. force polluters to internalize the external cost resulting from their actions. d. usually have no impact whatsoever on pollution levels, but will generate tax revenue for the government.