Which of the following is true of the aggregate supply curve?
a. It shows the inverse relationship between prices and national output.
b. It shows the positive relationship between the price level and the supply of all goods produced in the economy.
c. It shows the amount of real GDP consumed at different price levels.
d. It is a negatively sloped curve that shows the relationship between the price level and the cost of production of firms in the economy.
e. It shows the positive relationship between price and quantity supplied of an individual good.
b
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A fixed exchange rate system reduces the impact of
A) variations in the demand for real money balances on real incomes. B) the volatility of aggregate expenditures on real incomes. C) crowding out from fiscal expenditures. D) the beggar-thy-neighbor effect.
One of the strengths of a socialist economy, according to those who advocate such a system, is that government intervention will enable a more equitable distribution of income and therefore goods and services produced
a. True b. False Indicate whether the statement is true or false
Retained earnings are
a. earnings of a company that are not paid out to stockholders. b. the amount of revenue a corporation receives for the sale of its products minus its costs of production as measured by its accountants. c. the single most important piece of information about a stock. d. computed by multiplying the dividend yield by the price of the stock.
If domestic production of a product causes pollution that imposes an external cost on the country, then
A. exports of the product should be subsidized. B. exports of the product are less than they would be otherwise. C. exports of the product can make the country worse off. D. exports of the product offset the external costs.