Investment spending in the United States tends to be unstable because:
A. profits are highly variable.
B. the price level fluctuates rapidly.
C. investment spending is affected by interest rates.
D. capital wears out quickly and must be replaced often.
A. profits are highly variable.
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One of the factors that causes differences in inequality across countries is:
A. how many income earners there are relative to total population. B. the extent to which governments redistribute income through the public budget. C. the amount of jobs that are available in the country. D. the labor force participation rate within countries.
Which one of the following statements is TRUE?
A. The shape of the Keynesian short-run aggregate supply curve is based on the conclusion that there is no correlation between the level of real GDP and the employment level. B. The shape of the Keynesian short-run aggregate supply curve is based on the conclusion that domestic workers are harmed by imports. C. The shape of the Keynesian short-run aggregate supply curve is based on the conclusion that increases in aggregate demand will increase the price level, but will leave real GDP unaffected in the short term. D. The shape of the Keynesian short-run aggregate supply curve is based on the conclusion that increases in aggregate demand can boost output in the short term.
As the price of home heating oil rises, families buy less home heating oil. Hence a scatter diagram with the price of home heating oil on the vertical axis and the quantity purchased on the horizontal axis reveals a ________ relationshi
A) time-series B) linear C) negative D) positive E) cross-sectional
The above figure shows the supply and demand curves for rice in the U.S. and in Japan. Assume there is no trade between the two countries
If fertilizer price drop causes the supply curves in both countries to shift rightward by the same amount, then A) the quantity will increase the same amount in both counties. B) the quantity will decrease the same amount in both countries. C) the quantity will increase more in Japan than in the U.S. D) the quantity will increase more in the U.S. than in Japan.