The dynamic aggregate demand curve has a negative slope for all of the following reasons except:
A. the fact that high rates of inflation are good for the stock market.
B. the reduction in real wealth caused by inflation.
C. the redistribution that occurs as inflation has a greater impact on the poor than it does on the wealthy.
D. higher current inflation leads policymakers to increase the real interest rate, which depresses various components of aggregate expenditures.
Answer: A
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Owners of corporations are referred to most frequently as
a. entrepreneurs b. lien holders c. limited partners d. managers e. stockholders
The GDP price index: a. measures the average price of final goods and services produced in an economy
b. measures the quality of goods produced in an economy. c. is derived using the prices of only imported and exported goods and services. d. is derived using the implicit prices of goods and services produced by the government. e. measures the value of all intermediate goods and services sold in an economy.
According to the graph shown, if this economy was to engage in free trade, the good would:
This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.
A. be imported.
B. be exported.
C. no longer be produced domestically.
D. not be imported or exported and only be produced domestically.