A rise in the real interest rate will cause which of the components of aggregate demand to decline?
A) Only C
B) Only C and I
C) Only C, I, and NX
D) C, I, G, and NX
C
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The above figure shows the domestic market for tomatoes. Suppose this market is isolated from global competition and there is a support price set at $16. In this figure, what area equals the deadweight loss?
A) area B + area C + area D + area F B) area E C) area C + area D + area E + area G D) area A E) area F
A trend shows
A) the degree of correlation between two variables. B) the general tendency for a variable to rise or fall. C) the scale used to measure to variables. D) the increases in one variable.
The GDP deflator is a measure of the price level which is calculated as nominal GDP divided by real GDP and multiplied by 100
Indicate whether the statement is true or false
As a source of market power, a precommitment contract is an example of a(n)
A. incumbent reaction. B. incumbent advantage. C. newcomer advantage. D. newcomer reaction.