According to this Application, lower oil prices should ________ aggregate ________
A) increase; demand B) not change; demand
C) decrease; demand D) decrease; supply
A
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If both the real interest rate and the nominal interest rate are 3%, then the
A. inflation premium also is 3 percent. B. inflation premium is zero. C. real GDP must exceed the nominal GDP. D. nominal GDP must exceed the real GDP.
Households receive their income in the circular flow diagram by
A) obtaining dividends and interest payments. B) selling the use of their property. C) selling resources they own to business firms. D) selling the goods they produce at home.
If the number of potential workers in an economy increases while the size of the labor force remains unchanged, ________
A) the labor force participation rate will fall B) the labor force participation rate will remain unaffected C) the labor force participation rate will increase D) the natural rate of unemployment will increase
In the figure above, the substitution effect outweighs the income effect in all segments EXCEPT
A) 0a. B) 0c. C) bc. D) cd.