Refer to the graph below. Assume that the economy is in initial equilibrium where AD1 intersects AS1. If there is an unanticipated increase in aggregate demand, then according to new classical economics the economy will self-correct with a:
A. Movement from point B to point A
B. Movement from point A to point B
C. Shift from AS1 to AS2
D. Shift from AD2 to AD1
C. Shift from AS1 to AS2
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Which of the following is not true with respect to money market mutual funds?
A) They allow small savers to pool their funds to buy a diversified portfolio of money market instruments. B) They often include securities such as Treasury bills, Treasury bonds, commercial paper, and negotiable CDs. C) They charge a small management fee. D) Most funds offer limited withdrawal by check.
Angelo's Pizza is famous for its secret tomato sauce. The managers of Angelo's Pizza are more likely to produce all of their inputs rather than buy them due to ________.
A) communication costs B) transportation costs C) economies of scale D) trade secrets
Define gross domestic product
The amount of income a consumer has to spend on goods and services is known as
A) purchasing power. B) effective demand. C) a budget constraint. D) wealth.