When aggregate demand meets aggregate supply in the horizontal portion of the aggregate supply curve,
A) a decrease in demand will cause prices to rise but no change in output.
B) a decrease in demand will cause output to rise but no change in prices.
C) a decrease in demand will cause prices to fall but no change in output.
D) a decrease in demand will cause output to fall but no change in prices.
D
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Economic growth can be defined as a percentage increase in
A) per capita real GDP. B) nominal GDP. C) consumption by households. D) real GDP.
If the Fed is concerned about inflation, its actions ________ long-term interest rates so that investment ________ and net exports ________
A) lower; increases; decrease B) raise; decreases; decrease C) lower; increases; increase D) raise; increases; increase E) lower; decreases; decrease
What is one way to adjust the CPI for substitution bias?
A) Use the Paasche index. B) Use the Laspeyres index. C) Multiply the Paasche Index and the Laspeyres index. D) Take the geometric mean of the Paasche index and the Laspeyres index.
The difference between a sole proprietorship and a partnership is
a. a partnership is a separate legal being apart from its owners b. ability to issue stock c. limited liability d. the distribution of dividends e. the number of owners