Only a change in the price level can cause shifts in both the aggregate expenditure line and the aggregate demand curve.

a. true
b. false


b. false

Economics

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Appendix: Incentive-compatible revelation mechanisms attempt to

a. induce an employee to reject the next best alternative employment opportunity b. elicit privately-held information c. secure enforcement primarily by third parties d. reject voluntary contracting with third parties e. impose similar risk premiums on all employees

Economics

Using the Lorenz curve, the degree of income inequality is measured by the:

a. line connecting all points for which a given percentage of families receives exactly that cumulative percentage of income. b. distance of the Lorenz curve from the line of perfect equality. c. flat diagonal line that applies to a perfectly elastic demand curve. d. number of times the Lorenz curve crosses the line of perfect equality.

Economics

Which of the following is not an accurate statement about money market accounts?

(A) They pay a higher rate of interest than savings accounts. (B) They can be used for writing checks. (C) They offer a fixed interest rate. (D) They can be used for saving.

Economics

Is it possible for accounting profit to be positive but economic profit to be negative? Explain with an example

What will be an ideal response?

Economics