Which of the following will cause an increase in aggregate demand within the AS/AD model?
a. a decrease in prices
b. a decrease in the real interest rate
c. a decrease in consumer optimism as measured by the consumer sentiment index
d. a decrease in foreign incomes abroad
B
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Pick the scarce good below with the completely inelastic demand curve
A) Clean air B) Clean water C) Tropical rain forests D) Well-maintained national-forest fisheries E) Trick question: none of the above goods have a completely inelastic demand curve.
When the market demand increases in a perfect competition, the long-run result is a larger number of firms, a higher price, and a permanent economic profit for the firms
Indicate whether the statement is true or false
Unlike brokers, securities dealers
A) operate in secondary markets. B) risk capital losses. C) trade "used" securities. D) operate in primary markets.
If the ratio of labor to capital increases, we can expect that labor productivity will increase
a. True b. False Indicate whether the statement is true or false