An increase in aggregate demand normally does not cause inflation

a. True
b. False
Indicate whether the statement is true or false


False

Economics

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Which of the following goods is likely to have an income elasticity of demand that is less than zero?

a. A luxury yacht b. A beach house c. A state-of-the-art cellular phone d. A box of generic macaroni and cheese dinner e. A dinner at a French restaurant

Economics

If P = MC and MC > ATC, then a perfectly competitive firm will earn ______ profits.

A) positive B) zero C) negative D) breakeven

Economics

The crowding-out effect is more likely to dominate the crowding-in effect when investment is relatively

A. insensitive to interest rates and to GDP. B. insensitive to interest rates but sensitive to GDP. C. sensitive to interest rates and to GDP. D. sensitive to interest rates and insensitive to GDP.

Economics

Refer to Scenario 9.2 below to answer the question(s) that follow. SCENARIO 9.2: Tom borrowed $40,000 from his parents to open a donut stand. He agrees to pay his parents a 5% yearly return on the money they lent him. His other yearly fixed costs equal $10,000. His variable costs equal $25,000. He sold 40,000 dozen donuts during the year at a price of $2.00 per dozen.Refer to Scenario 9.2. Tom's profit is

A. $0. B. $26,000. C. $30,000. D. $43,000.

Economics