Comparing the AS-AD model and the Phillips curve, we see that
A) they both are graphed as a relationship between the rate of inflation and the unemployment rate.
B) the AS-AD model uses the price level and the Phillips curve uses the rate of inflation.
C) the AS-AD model is graphed as a relationship between the inflation rate and the rate of real GDP.
D) the AS-AD model uses the price level and the Phillips curve uses real GDP.
E) the Phillips curve is graphed as a relationship between the price level and the unemployment rate.
B
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A decrease in foreign income ________ exports of U.S.-made goods, so aggregate demand ________ and the aggregate demand curve shifts ________
A) increases; increases; rightward B) decreases; decreases; leftward C) decreases; increases; rightward D) increases; increases; leftward E) decreases; decreases; rightward
Using the labels on the graph below, the total cost for both firms at the cost-effective solution is ________, and the excess cost from using the uniform standard is___________
a. ABCGH; CGH b. ACH; CGH c. ACDEH; CDE d. ACH; CDE
The market for insurance is one example of reducing risk by using diversification
a. True b. False Indicate whether the statement is true or false
As an alternative to selling shares of stock as a means of raising funds, a large company could, instead,
a. invest in physical capital. b. use equity finance. c. sell bonds. d. purchase bonds.