Gradual adjustment of prices and wages to an increase in the aggregate demand curve implies that the aggregate supply curve is:
a. horizontal.
b. vertical.
c. upward sloping but not vertical.
d. downward sloping.
c
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Assume you have a credit card balance of $2,000 at 15 percent and the inflation rate is 3 percent. What are the nominal and real interest rates?
A) 15 percent nominal and 12 percent real B) 12 percent nominal and 15 percent real C) 15 percent nominal and 3 percent real D) 3 percent nominal and 12 percent real E) 15 percent nominal and 18 percent real
It is likely that the owners have little to do with the day-to-day management of a firm in the case of
A) partnerships only. B) proprietorships only. C) corporations only. D) partnerships and corporations.
All these increase differentiation, except
a. Product branding b. Reducing quality c. Advertising d. Limiting availability
Aggregate-demand curve shifts to the left if the money supply decreases.
a. true b. false