Business inventories tend to fall after an unexpected increase in aggregate demand
a. True
b. False
Indicate whether the statement is true or false
True
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Based on the figure below. Starting from long-run equilibrium at point C, a tax cut that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies. 
A. D; C B. B; C C. B; A D. D; B
What is meant by randomization? How does randomization affect the results of an experiment?
What will be an ideal response?
If savings does not depend upon the interest rate, then
a. the IS curve is vertical. b. the IS curve is horizontal. c. the LM curve is horizontal. d. the IS curve is still downward sloping. e. none of the above.
Suppose a loaf of bread sold for $3.00 in 2008 . The price of bread then increases to $3.60 in 2009 . The price index for bread considering 2008 as the base year is _____
a. 1.20 b. 83.33 c. 120 d. 100 e. 20