When firms spend more on additional holdings of raw materials, parts and finished goods ________
A) they are increasing their fixed investment
B) they are increasing their inventory investment
C) they are increasing their private consumption
D) all of the above
E) none of the above
B
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The recession of 2008-2009 was associated with a fall in housing prices which shifted aggregate demand to the left
a. True b. False Indicate whether the statement is true or false
Cost-push inflation is due to:
a. raw material cost increases. b. energy cost increases. c. All of the answers are correct. d. labor cost increases.
The effect of an increase in the price of gasoline on the demand for sport utility vehicles would be shown by a:
A. rightward shift of the demand curve for sport utility vehicles. B. leftward shift of the demand curve for sport utility vehicles. C. movement up and to the left along the demand curve for sport utility vehicles. D. movement down and to the right along the demand curve for sport utility vehicles.
Suppose output is $1000 billion, government purchases are $200 billion, desired consumption is $700 billion, and desired investment is $150 billion. Net foreign lending would be equal to
A. $50 billion. B. $150 billion. C. -$50 billion. D. -$150 billion.