Which of the following is an incorrect statement?
a. Macroeconomic equilibrium occurs at the intersection of the aggregate demand and aggregate supply curves.
b. The aggregate supply curve indicates a positive relationship between the price level and GDP.
c. Other things equal, a downward shift of the aggregate demand curve implies that the economy is entering a contractionary phase.
d. Aggregate demand and aggregate supply determine the equilibrium price and quantity of any given good.
e. The aggregate demand curve indicates a negative relationship between the price level and GDP.
d
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Linder's hypothesis says that countries with ________ of preferences will trade intensively with each other
A) differences B) utility C) similarity D) elasticity
The problem of production in multi-plant firms with asymmetric information can be solved by paying the manager
A) a piece rate, some constant amount per unit of output produced. B) a larger amount for each unit than was paid for the previous unit, to reflect increasing marginal cost. C) a smaller amount for each unit than was paid for the previous unit, to reflect decreasing marginal revenue. D) an annual bonus that increases with each unit of output up to capacity, and decreases with each unit of output past capacity. E) an annual bonus that is calculated decreases with each unit of output up to capacity, and increases with each unit of output past capacity.
The practice of increasing a nominal quantity each period by an amount equal to the percentage increase in a specified price index is called:
A. the Fisher effect. B. deflating. C. indexing. D. a substitution bias.
If you put $700 in a savings account at an interest rate of 3 percent, how much money will you have in one year?
A. $721 B. $703.00 C. $370 D. $679.61