How does a change in the price level influence the AE curve and the AD curve?
What will be an ideal response?
A change in the price level shifts the AE curve and creates a movement along the AD curve.
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Refer to Exhibit 9-2. The economy is currently producing Q1. At this level of Real GDP, the economy is experiencing
a. a shortage in the labor market. b. a surplus in the labor market. c. neither a shortage nor a surplus in the labor market. d. all of the above are equally likely
Which of the following formulas is correct?
A) Net investment = gross investment + capital B) Net investment = gross investment - saving C) Net investment = gross investment - wealth D) Net investment = gross investment - depreciation E) Net investment = gross investment + depreciation
Describe the major costs of inflation, being sure to distinguish between anticipated and unanticipated inflation
What will be an ideal response?
The direct costs in an economic evaluation include the all the following except:
a. reduced productivity at work. b. the cost of home remodeling to accommodate a physical handicap. c. hospitalization. d. medical devices. e. transportation to and from the physician's office.