Consider the two graphs above. Suppose that firms are able to use inventories as collateral for low-interest loans. This would ________ the desired level of inventories, as depicted in graph ________
A) increase; B
B) increase; A
C) decrease; B
D) decrease; A
A
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In one northern town, the snowmobilers enjoy snow while non-snowmobilers hate it. When the town gets two feet of fresh snow, which group is made wealthier?
A) Non-snowmobilers B) Snowmobilers C) Everybody D) Nobody
Which of the following schematics most accurately represents economic fluctuations during a business cycle?
A) Shock -> Spending response by households and firms -> Multiplier effect -> Change in real GDP B) Shock -> Multiplier effect -> Spending response by households and firms -> Change in real GDP C) Shock -> Multiplier effect -> Change in real GDP -> Spending response by households and firms D) Shock -> Change in real GDP -> Spending response by households and firms -> Multiplier effect
Which of the following disciplines is not a social science?
a. psychology b. mathematics c. economics d. political science e. sociology
An increase in energy costs will most likely cause the price level and rGDP to change in which of the following ways?
A) Increase/Increase B) Increase/Decrease C) Increase/No change D) Decrease/Increase E) Decrease/Decrease