Inflation is defined as an increase in:
a. all consumer products.
b. real GDP.
c. the average price level.
d. real wages of workers.
c
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Restrictive covenants
A) generally require that firms use debt finance rather than equity finance. B) generally require that firms use equity finance rather than debt finance. C) put restrictions on the use of borrowed funds. D) were outlawed under the Civil Rights Act of 1964.
Suppose your manufacturing firm is not a price-taking seller (i.e., has some control over your product price) and sells machinery to U.S. (domestic) buyers as well as foreign buyers
The domestic demand for your product is inelastic but the foreign demand is elastic, and the machinery is bulky so that the high transport costs prevent resale among the buyers. You could charge both groups of buyers the same price for the machinery, but you know that you could increase total sales revenue by charging the domestic buyers a ________ price and charging the foreign customers a ________ price. A) higher, higher B) higher, lower C) lower, higher D) lower, lower
Households and firms pay taxes to the government to:
a. increase their consumption spending. b. finance the country's import bill. c. increase their savings. d. improve their standard of living. e. finance government expenditures.
Keynesian policy:
A. promotes spending more and taxing less to boost economic activity to potential GDP. B. refers to fiscal policy. C. refers to policies that actively shift aggregate demand in an effort to reach full employment. D. All of these are true.