The net result of deflation is to:
A. decrease consumption and investment, decreasing aggregate demand.
B. decrease consumption and increase investment, decreasing aggregate demand overall.
C. increase consumption and investment, increasing aggregate demand.
D. increase consumption and decrease investment, increasing aggregate demand overall.
A. decrease consumption and investment, decreasing aggregate demand.
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To ask "what causes a recession" is the same as asking
A) "why does supply meet demand?" B) "what is the link between price elasticity of demand and price elasticity of supply?" C) "why have so many individuals made errors all at once?" D) "why have price controls failed us?"
Only "large" firms are able to sell __________ securities, with __________ yields than the securities the small and mid-size firms can sell
A) liquid; lower B) liquid; higher C) illiquid; lower D) illiquid; higher
Answer the following statements true (T) or false (F)
1) All else equal, firms with a few large plants are more likely to have lower average costs than firms with many small plants. 2) A plant is located at the cost-minimizing location when the marginal benefit of moving closer to the inputs is exactly double the marginal cost of moving closer. 3) If a firm is not directly paying all of the transportation costs, managers still have an incentive to minimize the sum of the production and transportation costs. 4) If a firm has two plants, one in a desirable location and one in an undesirable location, workers located in the desirable location are likely to be paid more. 5) If a firm has two plants and workers at Plant 1 are paid $40,000 a year and workers at Plant 2 are paid $45,000, the $5,000 difference in salary is a compensating wage differential.
Data for the United States traced out an almost perfect Phillips curve for much of the
a. 1960s. b. 1970s. c. 1980s. d. 1990s.