In general, during the business cycle, when economic activity is peaking:
a. interest rates begin to creep higher
b. unemployment levels are low
c. inflation begins to edge higher
d. all of the above
Answer : d. all of the above
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Refer to the figure above. What is the consumer surplus when Lithasia opens up to free trade?
A) $155 B) $215 C) $245 D) $325
The aggregate demand curve will shift to the right ________ the initial increase in government purchases
A) by less than B) by more than C) by the same amount as D) sometimes by more than and other times by less than
M2 is also referred to as which of the following?
A) currency B) narrow money C) near money D) high powered money E) none of the above
The ________ demonstrates the roles played by households and firms in the market system
A) production possibilities frontier B) circular flow model C) theory of comparative advantage D) business cycle