When they are confronted with an adverse shock to aggregate supply, policymakers face a difficult choice in that
a. if they contract aggregate demand, the unemployment rate will increase further.
b. if they expand aggregate demand, the inflation rate will increase further.
c. they face a less favorable trade-off between inflation and unemployment than they did before the shock.
d. All of the above are correct.
d
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The decision about whether a firm in each particular industry must operate as a proprietorship, partnership, or corporation is made by the Internal Revenue Service
Indicate whether the statement is true or false
An annual income statement from Quest Realty, Inc. is shown below:
During this year of operation, Quest Realty owned and occupied an office building in downtown Indianapolis. For this year, the building could have been leased to other businesses for $2,000,000 in lease income. Quest Realty also owned undeveloped land valued at $15,000,000. Owners of Quest Realty can earn a 14% rate of return annually on funds invested elsewhere.Total implicit costs of using owner-supplied resources for Quest Realty for this year are
A. $19,000,000 B. $41,000,000 C. $4,100,000 D. $38,200,000 E. none of the above
A quota reduces quantity sold by operating through the demand side of the market
a. True b. False Indicate whether the statement is true or false
If Linda's income goes up, she will consume more of all normal goods.
Answer the following statement true (T) or false (F)