Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD3 the result in the long run would be:
A. P2 and Y2.
B. P1 and Y2.
C. P4 and Y2.
D. P1 and Y1.
Answer: B
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Net exports is negative if
A) the value of exports exceeds the value of imports. B) the value of imports exceeds the value of exports. C) the tariff payments are included in the value of imported and exported items. D) too much production occurs in the exporting country during the year.
Investment decisions are based on the trade-off between the:
A. potential profit that could be generated by investment and the cost of borrowing money to finance the investment. B. interest rate that savers will earn and the interest rate that the borrowers will have to pay. C. future value of the loan and the present value of the loan. D. potential profit that could be generated and the willingness of a lender to make the loan.
Fred operates his own business, Fred would be counted as employed
a. in both the household and estblishment surveys b. in the household but not the establishment survey. c. in the establishment but not the household survey. d. in neither the household nor the establishment survey.
How are banks and venture capital firms different?
A. Banks are financial intermediaries. B. Banks receive funds from the suppliers of capital. C. Venture capital firms expect quite a few of their investments to fail. D. Venture capital firms provide funds to businesses.