Which of the following would lead to a decrease in bond demand?
A. An increase in wealth.
B. A decrease in liquidity.
C. A decrease in risk.
D. An increase in expected inflation.
Answer: D
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The intersection between the long-run aggregate supply and aggregate demand curves determines the: a. level of full-employment real GDP. b. level of prices (CPI)
c. money supply. d. marginal product. e. both a and b.
According to the law of supply, when will lower corn prices decrease the quantity supplied of corn?
A. always B. when demand is fixed C. when technology improves D. when there are no shortages nor surpluses in the corn market
The labels for the axes of an aggregate supply curve should be:
A. Real domestic output for the vertical axis and price level for the horizontal axis B. Real domestic output for the horizontal axis and price level for the vertical axis C. Real employment for the vertical axis and price level for the horizontal axis D. Aggregate demand for the vertical axis and real national output for the horizontal axis
All other things constant, higher implicit cost results in lower accounting profit
a. True b. False