In the long-run version of the aggregate demand and aggregate supply model, a shift in the aggregate demand curve:
A. can change the inflation rate as well as the real growth rate.
B. can change the inflation rate, but not the real growth rate.
C. can change the real growth rate, but not the inflation rate.
D. can change neither the real growth rate nor the inflation rate.
Ans: B. can change the inflation rate, but not the real growth rate.
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If aggregate planned expenditures are less than real GDP, then
A) inventories increase above their planned levels and businesses increase their production. B) unplanned inventory changes equal zero. C) inventories decrease below their planned levels and businesses increase their production. D) inventories increase above their planned levels and businesses decrease their production. E) there is no equilibrium level of real GDP.
Mention some of ways in which insurers control the problem of moral hazard
If the two countries are at points A and B in Figure 35.1 and do not trade, what is the total number of motorcycles produced per year?
A. 2,000. B. 3,000. C. 4,000. D. 1,000.
Efficiency wages may lower employee turnover.
Answer the following statement true (T) or false (F)