It has been noted that when the price of a good increases, people purchase less of the good. This is an example of
A) macroeconomic analysis.
B) irrational behavior.
C) normative economic analysis.
D) positive economic analysis.
D
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Which of the following items is included in the M1 money supply?
A) $10 bills in the Bank of America B) a $5,000 student loan granted to a U.S. citizen C) coins in a Pepsi vending machine, waiting to be used as change D) a $5,000 line of credit on a newly graduated student's credit card E) $1,500 in a student's saving account
The short run is
A) usually 3 - 6 months. B) dependent on the characteristics of the industry. C) when a firm has to decide whether or not to exit. D) identical to the long run for most firms.
Demand-side inflation is usually accompanied by increasing real GDP, while supply-side inflation is usually accompanied by falling real GDP
a. True b. False Indicate whether the statement is true or false
Assume there is a decrease in government purchases and exports. Currently there is a recessionary gap, which implies that
A. Desired spending is greater than output. B. Inventories are accumulating. C. Investment is greater than saving. D. Inventories are being depleted.