If aggregate demand keeps shifting rightward month after month and aggregate supply remains constant, the economy will experience a recession
a. True
b. False
Indicate whether the statement is true or false
False
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The supply curve of a depletable natural resource is usually
A. downward sloping because the resource runs out over time. B. upward sloping because more of the resource can be profitably extracted at higher prices. C. upward sloping because the price of the resource rises at the rate of inflation. D. vertical because the supply of the resource is fixed.
Refer to the circular-flow model in Exhibit 1.1. If A represents product markets, and D represents firms, then the flow from A to D is _____
a. revenue. b. expenditures. c. labor, capital, and natural resources. d. goods and services. e. wages, interest, rent, and profit. check image at top
If the infant industry argument is used to protect an industry that has already matured, then
A) consumers lose because they will pay a price for a product that is above the world price. B) consumers lose because they will pay a price for a product, which is less than the world price. C) stockholders lose because the firm cannot compete with other firms. D) no one loses.
Which of the following would most likely move the economy into a recession in the short term?
A. Invention of a new product that most consumers want to buy. B. Innovations in management that enhance worker productivity. C. The central bank printing less money than was anticipated. D. Congress passing a reduction in personal income tax rates.