Aggregate expenditures fall as prices rise because higher prices
a. reduce the value of household financial assets and hence reduce planned consumption.
b. increase demand for imports and discourage exports.
c. cause higher interest rates, which reduce the demand for investment.
d. All of these.
d. All of these.
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What is the difference between a production possibilities curve and a consumption possibilities curve?
What will be an ideal response?
Suppose that U.S. incomes rise relative to British incomes. Then,
a. the dollar will appreciate and the pound will depreciate b. the dollar will depreciate and the pound will appreciate c. the dollar will depreciate and the pound's value will remain constant d. the dollar will appreciate and the pound's value will remain constant e. neither the dollar nor the pound will be affected
The minimum wage does not apply to
a. jobs for teenagers. b. jobs for members of minority groups. c. unpaid internships. d. jobs that include on-the-job training.
A situation in which output decreases while prices increase is often referred to as:
A. inflation. B. negative economic growth. C. a recession. D. stagflation.