Mutual funds are a good and relatively inexpensive way for individual investors to diversify
Indicate whether the statement is true or false
TRUE
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If the aggregate demand curve shifts ________ faster than the long-run aggregate supply curve, then ________ occurs
A) leftward; economic growth B) leftward; inflation C) rightward; economic growth D) rightward; inflation
Unlike the Classical economists, Keynes believed that money could affect real economic activity through its effects on
A) the price level. B) the interest rate. C) savings. D) velocity.
Why is responding to a financial crisis by bailing out financial institutions more effective than direct support of nonfinancial businesses?
What will be an ideal response?
When a firm incurs negative economic profit, it should:
a. hire more laborers to make the business activity profitable. b. transfer the resources from its current use to other alternative uses. c. purchase additional raw materials to produce more output. d. transfer additional resources from other alternative uses to the current activity. e. continue to operate with the same resources.