If the price level falls, the aggregate supply increases as a result of the aggregate demand curve shifting left.
Answer the following statement true (T) or false (F)
False
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Before it became illegal, cigarette manufacturers once relied heavily on TV advertising. According to the textbook, when the government banned TV advertising, the cigarette manufacturers:
A. were made worse off because the ban significantly reduced cigarette sales. B. thought their First Amendment rights were being violated. C. supported the ban due to their concern over health effects of smoking. D. benefited because the decision about whether to advertise on TV was a prisoner's dilemma.
You turn to the bond market page of a newspaper and look under the column headed "Net Chg" and see that it says, "-1/4" this indicates that
A. the closing price for the bond on this particular day was $2.50 lower than on the previous day. B. the closing price for the bond on this particular day is $0.25 lower than on the previous day. C. the yield for the bond has fallen by 0.25% compared to the previous day. D. the yield for the bond has fallen by 0.25% compared to exactly one year ago.
The real interest rate is the:
A. the interest rate charged on a loan in dollar terms. B. market interest rate. C. annual percentage increase in the purchasing power of a financial asset. D. annual percentage increase in the nominal value of a financial asset.
Refer to the table below. Econland's balance of trade in goods and services shows a:
Answer the question on the basis of the following balance of payments data for the hypothetical nation of Econland. All figures are in billions of dollars. (1) Goods exports +$220 (2) Goods imports -328 (3) Exports of services +54 (4) Imports of services -55 (5) Net investment income +18 (6) Net transfers -11 (7) Capital account -1 (8) Foreign purchases of Econland assets +124 (9) Econland purchases of foreign assets -21 A. Net inflow of payments of $109 billion B. Net outflow of payments of $109 billion C. Net inflow of payments of $108 billion D. Net outflow of payments of $108 billion