Examining data on cyclical unemployment plotted against unanticipated inflation shows
A) a positive relationship.
B) a negative relationship.
C) no significant relationship.
D) a relationship only during the 1960s.
B
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The main disadvantage to organizing a business as a proprietorship is
A) its complex management structure. B) limited liability. C) unlimited liability. D) that economic profit cannot be maximized.
Investment demand is downward sloping because
A) an increase in investment demand causes interest rates to fall. B) at lower interest rates, firms will undertake more investment. C) at lower interest rates, firms will undertake less investment. D) none of the above.
The new classical model states that a
a. budget surplus will effectively retard inflation that comes from excess demand. b. budget deficit will have no impact on real interest rates. c. budget deficit will increase the real interest rate. d. substitution of debt for tax financing will increase aggregate demand and real output.
GDP measures:
a) A country's income b) A country's wealth c) Consumer spending d) Net trade income