When actual output exceeds potential output, _____
Fill in the blank(s) with the appropriate word(s).
prices tend to increase.
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A nation with a trade surplus will necessarily have saving that is greater than domestic investment
a. True b. False Indicate whether the statement is true or false
The definition of M1 includes:
A. hard money and savings account balances. B. cash, checking accounts, savings accounts, and other financial instruments where money is locked away for a specified period of time. C. cash and checking account balances. D. cash and savings account balances.
The underlying reason production possibilities frontiers are likely to be bowed out (rather than linear) is
A. choices have consequences. B. some resources and people can be better used producing one good rather than another. C. there is always some level of unemployment. D. there is always opportunity costs.
In 2015, the price of peanuts was rising, which led peanut butter buyers to expect the price of peanut butter would rise in the future
Consequently, in the current market for peanut butter there was ________ which resulted in ________ in the price of peanut butter and ________ in the quantity of peanut butter. A) an increase in demand for peanut butter; an increase; an increase B) an increase in supply of peanut butter; a decrease; an increase C) a decrease in demand for peanut butter; a decrease; a decrease D) a decrease in supply of peanut butter; an increase; a decrease