Starting from a situation of full employment, an increase in aggregate demand creates ________ and ________ the price level
A) an inflationary gap; raises
B) a recessionary gap; lowers
C) a recessionary gap; raises
D) a recessionary gap; does not change
E) an inflationary gap; lowers
A
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Consumers are often bewildered by the different array of choices, plans and prices that are offered by cell phone service companies
Explain in terms of consumer surplus why this makes sense from both the company's perspective and that of the consumer.
At an interest rate of 3%, what is the present value of $1000 to be received five years from now?
A) $863 B) $1,667 C) $1,159 D) $850
In examining incomes of free southerners prior to the Civil War, Walton and Rockoff conclude that, compared with northerners, free southerners were ______
a. at least 50% poorer than northerners. b. far richer than northerners, except in the old South. c. doing fairly well, even in the old South. d. far richer than northerners but a downward trend was noticeable.
Write the formula to find the present value of $750 to be paid in 5 years if the interest rate is 3 percent