What can cause a recessionary gap?
a. An increase in consumption
b. A decline in investment
c. A decline in imports
d. An increase in exports
b. A decline in investment
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To maximize overall profit in peak-load pricing, managers must determine ________ capacity that maximizes ________ season profit.
A) long-run; peak- B) short-run; peak- C) long-run; off-peak D) short-run; off-peak
Which of the following statements about economic scarcity is FALSE?
A) Scarcity occurs among the poor and the rich. B) Scarcity only occurs if there are shortages and people wait in line to buy things. C) Scarcity results from not having enough resources to produce all the things we want. D) Scarcity results in the necessity to make choices.
If money wages increase, the most likely result is a(n)
a. increase in aggregate supply. b. decrease in aggregate supply. c. steeper aggregate supply curve. d. flatter aggregate supply curve.
Which of the following is a function of money?
(a) Unit of Account. (b) Store of Value. (c) Standard of Deferred Payment. (d) All of the above