[NeedAttention]
Exhibit 30-5
?
A. 2; BDC
B. 1; ABC
C. 3; ABC
D. 2; ABC
E. 1; BDC
Answer: A
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Labor demand curves always slope down.
Answer the following statement true (T) or false (F)
If the aggregate demand curve shifts ________ faster than the long-run aggregate supply curve, then ________ occurs
A) leftward; economic growth B) leftward; inflation C) rightward; economic growth D) rightward; inflation
The possibility of speculative bubbles in the stock market arises in part because
a. stock prices may not depend at all on psychological factors. b. fundamental analysis may be the correct way to evaluate the value of stocks. c. future streams of dividend payments are very hard to estimate. d. the value of shares of stock depends not only on the future stream of dividend payments but also on the price at which the stock will be sold.
An increase in interest rates will cause
A. AS to increase (move down and to the right). B. AD to increase (move to the right). C. AD to decrease (move to the left). D. AS to decrease (move up and to the left).