When aggregate expenditure increases, the price level either decreases or remains unchanged, but it cannot increase
Indicate whether the statement is true or false
F
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In a partnership, debts accumulated by one partner are
A) the responsibility of that partner only. B) the responsibility of that partner plus any partners who are actively involved in running the partnership. C) the responsibility of all of the other partners for the full amount of the debt. D) the responsibility of all of the other partners, up to the total value of the firm.
Which of the following is the most realistic example concerning economic policy?
a. An economist accurately predicts how unemployment rates will change next year. b. An economist knows if the money supply increases 3 percent, interest rates will decrease 3 percent. c. An economist predicts the exact effect an expansionary policy will have. d. An economist believes interest rates will increase next year but is not absolutely sure.
Answer the following statement(s) true (T) or false (F)
1. Changes in the price of resources do not help determine supply because those resources can be replaced by substitute goods. 2. Population changes are a key determinant of demand for goods and services. 3. Mae's Restaurant is the only establishment in town that sells cinnamon rolls. Mae therefore has a monopoly on the cinnamon roll business in town. 4. Competition in an oligopoly is centered more on making one product stand out from another than it is on price. 5. Products manufactured in foreign countries by U.S. companies are included in the U.S.'s gross domestic product (GDP).
Starting from long-run equilibrium, a large tax cut will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; higher B. expansionary; higher; potential C. recessionary; higher; potential D. recessionary; lower; lower