A lower price level causes the C + I + G + X curve to shift as a result of a change in all the following EXCEPT
A) an increase in real wealth.
B) an increase in foreign spending on domestic goods.
C) an increase in aggregate supply.
D) a decrease in interest rates.
C
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Diebold and Rudebusch showed that the composite index of leading indicators did not improve forecasts of industrial production because
A) the index is not produced in a timely manner. B) the government manipulates the index so it never predicts a recession. C) the index is not designed for forecasting. D) data on the components of the index are revised.
For a linear demand curve, where is the amount of total expenditures on a good maximized?
What will be an ideal response?
Which of the following best describes an entrepreneur?
a. A person who combines the factors of production to produce innovative products. b. A special type of capital. c. Wealthy individuals who provide savings that stimulate the economy. d. A person who works as an office clerk at a major corporation.
When workers are paid higher wages, production costs:
A. rise, supply shifts leftward, and product prices rise. B. rise, supply shifts leftward, and product prices fall. C. rise, supply shifts rightward, and product prices rise. D. fall, supply shifts rightward, and product prices fall.