In the long-run, the aggregate supply curve normally is downward-sloping
a. True
b. False
Indicate whether the statement is true or false
False
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The life-cycle hypothesis predicts what consequence of aging of the overall population? [That is, an increase in T, relative to R & L.]
A) a decrease in the marginal propensity to consume out of wealth B) an increase in aggregate saving C) a decrease in the marginal propensity to consume out of income D) an increase in aggregate wealth
Which of the following phrases does not accurately describe a feature of the European economy during the Renaissance period?
a. Technological advances in navigation b. The rise of nation-states c. Declining population d. Increased security of persons and property
Refer to the above diagram. At output level Q average fixed cost:
A. is equal to QE. B. is equal to EF. C. is measured by both QF and ED. D. cannot be determined from the information given.
Monetarists advocate that the
A. money supply should be increased during inflation and reduced during recession. B. money supply should be reduced during inflation and increased during recession. C. money supply should be increased by a constant rate year after year. D. counter cyclical approach to fiscal policy be adopted.