Decreasing aggregate demand to eliminate an inflationary gap often creates the problem of
A. unemployment.
B. increasing real GDP.
C. increasing inflation.
D. increasing the labor force.
Answer: A
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Which of the following factors is expected to cause the demand curve for coffee to shift to the right?
A) An increase in the supply of coffee due to better weather B) A higher personal tax on the income of all consumers C) A fall in the manufacturing cost of coffee D) A higher tax on the sale of tea, a substitute for coffee
If employers are profit-maximizers, then
a. competition will always eventually eliminate employment discrimination. b. employment discrimination may persist if consumers discriminate. c. employment discrimination will persist because it is always profitable. d. compensating differentials cannot exist.
Which of the following is an example of U.S. foreign direct investment?
a. A U.S. based mutual fund buys stock in Eastern European companies. b. A U.S. citizen builds and operates a coffee shop in the Netherlands. c. A Swiss bank buys a U.S. government bond. d. A German tractor factory opens a plant in Waterloo, Iowa.
Which of the following represents a decrease in cash flows?
a) Increase in Accounts Payable b) Decrease in Inventory c) Decrease in Wages Payable d) Increase in Deferred Revenue