The Net Present Value approach to investment results in an investment being undertaken only if
A) its net present value is positive.
B) its net present value is zero.
C) it has positive cash flow.
D) its internal rate of return equals the rate of interest.
A
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In the above figure, B is the current long-run aggregate supply curve and E is the current short-run aggregate supply curve. Technological advances mean the long-run aggregate supply curve and short-run aggregate supply curve
A) remain B and E. B) shift to A and D, respectively. C) shift to C and F, respectively. D) shift to C and remain E, respectively.
An increase in demand caused no change in the equilibrium price. Thus, supply must be
A. perfectly inelastic. B. perfectly elastic. C. inelastic. D. elastic.
The long-run Phillips Curve is vertical at:
A. Price level of 100 B. The natural rate of unemployment C. The natural rate of inflation D. Potential GDP
A clear effect of deregulating the airline industry has been to
A) eliminate price competition between airlines. B) make fewer flights available at popular times. C) raise average fares. D) reduce airline safety. E) reduce the average wage of pilots.