When plotted with the aggregate price level on the vertical axis and output on the horizontal axis, which of the following curves slopes downward?
A) SRAS
B) AD
C) LRAS
D) None of the above
B
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When households practice diversification it means that they are buying which of the following?
a. stocks or bonds from only one company to increase their risks b. stocks or bonds from only one company to lower their risks c. stocks and bonds from a wide-range of companies to increase their risks d. stocks and bonds from a wide-range of companies to lower their risks
The economy is in the horizontal portion of the AS curve, there is a liquidity trap, and investment spending is sensitive to changes in the interest rate. According to the Keynesian transmission mechanism, if the money supply increases the interest rate __________, investment spending __________, the AD curve __________ and the price level __________
A) falls; rises; shifts to the right; rises B) falls; rises; shifts to the right; remains unchanged C) does not change; does not change; does not change; does not change D) does not change; shifts to the left; does not change; rises E) rises; falls; left; falls
In 2016, the face value of tickets to the Broadway musical Hamilton was
A) above the equilibrium price. B) below the equilibrium price. C) set exactly at the equilibrium price. D) lowered due to falling demand.
The unemployment rate is the fraction of the labor force without a job.
Answer the following statement true (T) or false (F)