Which of the following statements is TRUE?
A) There is a direct relationship between investment and the interest rate.
B) There is an inverse relationship between investment and the interest rate.
C) Investment is always less than savings.
D) There is no relationship between investment and the interest rate.
B
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In the event of deflation, or negative inflation, then
a. real GDP is always lower than nominal GDP. b. real GDP is always lower than nominal GDP after the base year. c. real GDP is always lower than nominal GDP. d. real GDP is always higher than nominal GDP before the base year. e. None of the above
You lose your job and, as a result, you buy more frozen pizzas. For you, frozen pizza are a(n)
a. luxury good. b. inferior good. c. normal good. d. complementary good.
Refer to the above diagram. A shift from AD1 to AD2 would be consistent with what economic event in U.S. history?
A. Full-employment in the late 1990s. B. Cost-push inflation in the mid-1970s. C. Demand-pull inflation in the late 1960s. D. Recession in 2001.
In the long run:
A. per-unit costs are fixed. B. all inputs are fixed. C. all inputs are variable. D. some inputs are not variable.