Solvency is having:
A. sufficient assets to cover long-run liabilities.
B. assets that can be readily converted into cash.
C. liabilities that can be readily converted into cash.
D. sufficient liabilities to cover long-run assets.
Answer: A
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A firm deciding how many hours to hire can be represented:
A. with an individual labor-supply curve. B. in the market labor-supply curve. C. with an individual labor-demand curve. D. in the market labor-demand curve.
Movement along the aggregate demand curve may be caused by a change in autonomous investment spending
a. True b. False Indicate whether the statement is true or false
When a country experiences capital flight its currency
a. appreciates and net exports rise. b. appreciates and net exports fall. c. depreciates and net exports rise. d. depreciates and net exports fall.
The economy pictured in the figure below has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; B B. recessionary; C C. recessionary; A D. expansionary; A