If the demand for a product increases proportionately faster than the increase in consumers' incomes, then the income elasticity of demand for the product is:
A. Zero
B. Greater than zero
C. Less than zero
D. Equal to 1
B. Greater than zero
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The fact that output gaps will not last indefinitely, but will be closed by rising or falling inflation is the economy's:
A. income-expenditure multiplier. B. self-correcting property. C. short-run equilibrium property. D. long-run equilibrium property.
Prices help coordinate all phases of production so producers have the right quantities of resources they need, in the right place, to operate
Indicate whether the statement is true or false
In 2008, the financial and housing crisis caused firms to decrease their profit expectations. As a result, there was a ________ in the ________ for loanable funds curve
A) leftward shift; demand B) movement upward along; demand C) leftward shift; supply D) movement downward along; supply
If the quantity of money increases, the
A) price level rises and the AD curve does not shift. B) AD curve shifts leftward and aggregate demand decreases. C) AD curve does not shift and there is a movement upward along the curve. D) AD curve shifts rightward and aggregate demand increases.