The three principal factors that explain why the aggregate demand curve is downward sloping are
a. real wealth holdings, the interest rate, and international trade
b. the price level, the interest rate, and economic growth
c. the interest rate, the economic growth, and international trade
d. cost-pull inflation, demand-pull inflation, and real wealth holdings
e. the phases of the business cycle: recession, downturn, and recovery
A
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An example of a question that might be explored in microeconomics is to determine
A) the number of workers employed by Intel. B) savings by the household sector. C) why the U.S. economy has grown more rapidly than the Japanese economy. D) the total employment within the U.S. economy.
In cities with rent controls, the actual rents paid can be higher than the legal maximum. One explanation for this is
A) rent control laws are so complicated that landlords and tenants may not be aware of what the legal price is. B) landlords are allowed to charge more than the legal maximum on some apartments so long as they charge less on others. C) the legal penalty landlords face for charging more than the legal maximum rent is less than the revenue earned by charging their tenants more than the maximum rent. D) because there is a shortage of apartments, tenants often are willing to pay rents higher than the law allows.
Employing the error learning model to forecast sales, a firm where sales last period were expected to be $110 million, but actually sold $100 million would forecast that sales this period would be ________ if ________ is the coefficient of adjustment
. A) 103; 0.03 B) 105; 0.5 C) 110; 0.10 D) All of the above are correct.
Refer to Figure 4.1. All else equal, a decrease in the government's budget deficit will cause
A) a shift from S1 to S2. B) a shift from S2 to S1. C) a change in the interest rate from r2 to r1. D) a change in loanable funds from L2 to L1.