From 2005 to 2006 the U.S. economy experienced significant inflation because the aggregate demand curve shifted outward more than the aggregate supply curve shifted outward
a. True
b. False
Indicate whether the statement is true or false
False
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Plowback refers to the profits management decides to keep and reinvest in the firm’s operations.
Answer the following statement true (T) or false (F)
Why do people hold money (currency and checking account balances), and thereby forgo earning interest or dividends from a financial investment?
a. Some money is demanded for everyday transactions like parking fees, lunch, and buying groceries. b. Some money is demanded as a precaution against unexpected costs such as automobile repairs, speeding tickets, or temporary loss of a job. c. Some money is demanded for speculative purchases of stocks, bonds, or collectibles in case they become available at a particularly low price. d. All of the above are correct.
When an industry is monopolized, the move from a competitive environment to a monopoly leads to a decrease in consumer surplus and an increase in industry profits in a one-to-one ratio.
Answer the following statement true (T) or false (F)
Give the basic symbolic equations for the mainstream view of the economy. Identify each symbol in the equation with a brief explanation. Using this equation, what is one major explanation for instability in the economy from a mainstream perspective?
What will be an ideal response?