A rise in confidence is associated with higher consumption and investment demand, and leads to:
a. a downward shift in the AD curve.
b. an inward shift in the AD curve.
c. an outward shift in the AD curve.
d. an upward shift in the AD curve.
c. an outward shift in the AD curve.
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The length of the business cycle in any business cycle theory can vary, but the long-wave cycle (or longer wave cycle) refers to
a. war-induced business cycle theory b. the equilibrium of national income theory c. the innovation cycle theory d. interaction of the accelerator and multiplier theory e. real business cycle theory
Refer to Figure 28-8. A typical long-run Phillips curve would have the appearance of a curve running through points
A) A and B. B) A and C. C) B and C. D) A, B, and C.
If the equilibrium exchange rate between U.S. dollars and Japanese yen is $0.008 = 1 yen, but currently the exchange rate is $0.007 = 1 yen, then with flexible exchange rates the dollar price of a yen will __________, and the dollar will __________
A) increase; appreciate B) decrease; appreciate C) increase; depreciate D) decrease; depreciate
A particular brand of red soda was pulled from the market because company executives felt it was not modern enough. Immediately, people began contacting the company asking for the product to return, threatening to quit buying the company’s other products, and expressing their desire to pay a premium for the red soda. As a result, the company put it back on the market. This is an example of ______.
a. production possibilities b. centralized planning c. government bureaucracy d. consumer sovereignty