If unemployment and inflation move inversely, then we can infer that business fluctuations are
a. from the demand side.
b. from the supply side.
c. from both the demand and supply side.
d. purely random events.
a
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The least responsive to interest rate changes is the ____ demand for money.
A. transactions B. precautionary C. speculative
In the consumption function C = a + c(Y - T), the "marginal propensity to consume" appears as
A) a. B) c. C) cY. D) -cT. E) c(Y - T).
Which of the following does NOT occur when the price of a good increases?
A. The good becomes more expensive relative to all other goods. C. Consumers shift their purchases away from the more expensive good. D. The consumer is effectively poorer than before the increase in price.
On a TE-TP diagram consider a level of Real GDP at which the vertical distance to the TE line is less than the vertical distance to the 45-degree line. This level of Real GDP is __________ its equilibrium level, with __________
A) above; TE > TP B) above; TE < TP C) below; TE > TP D) below; TE < TP