In an aggregate demand-aggregate supply diagram, equal decreases in government spending and taxes will:
A. shift the AD curve to the right.
B. increase the equilibrium GDP.
C. not affect the AD curve.
D. shift the AD curve to the left.
D. shift the AD curve to the left.
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If the inflation rate exceeds the nominal rate of interest:
a. the real interest rate is negative. b. All of the answers are correct. c. lenders lose. d. savers lose.
Suppose there are a series of forest fires that affect the lumber industry while, at the same time, consumers demand more wooden furniture. The wooden furniture market would experience
A. A decrease in price and an indeterminate change in quantity. B. An increase in quantity and an indeterminate change in price. C. An increase in price and an indeterminate change in quantity. D. An increase in price and an increase in quantity.
Refer to Table 11-3. The table above refers to the relationship between the quantity of workers employed and the number of cardboard boxes produced per day by Manny's House of Boxes. The capital used to produce the boxes is fixed
Diminishing returns to labor are first observed in this example after Manny hires the ________ worker. A) second B) third C) fourth D) fifth
If you carefully research the products, technologies, patents, and management of firms, the efficient markets theory of stock prices, predicts that
a. you will probably reap significant gains b. you will actually decrease your odds of doing better than the average investor c. you will probably do about as well as someone who did no research d. you will lose money unless you failed to consider historical stock price patterns e. both b and d