According to the law of demand, a demand curve:
A. Is upward sloping.
B. Is downward sloping.
C. Is a horizontal, or flat, line.
D. Can slope either upward or downward based on consumer behavior.
Answer: B. Is downward sloping.
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During an economic boom
A) aggregate demand exceeds aggregate supply. B) potential output exceeds quantity demanded. C) actual output exceeds potential output. D) potential output exceeds actual output.
The business cycle occurs because aggregate demand and aggregate supply change at uneven rates
Indicate whether the statement is true or false
The purchase of a new automobile is included in
A) investment expenditures. B) consumption expenditures on durable goods. C) consumption expenditures on nondurable goods. D) consumption expenditures on services.
To obtain the slope estimator using the least squares principle, you divide the
A) sample variance of X by the sample variance of Y. B) sample covariance of X and Y by the sample variance of Y. C) sample covariance of X and Y by the sample variance of X. D) sample variance of X by the sample covariance of X and Y.