The aggregate supply/aggregate demand model is used to help understand all of the following except
A) inflation.
B) business cycle fluctuations.
C) the aggregate value of stock traded in the stock market. D) growth of potential GDP.
C) the aggregate value of stock traded in the stock market.
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In the short run in the Keynesian model, a sharp increase in oil prices would leave the economy with a ________ level of output and a ________ real interest rate
A) higher; lower B) lower; higher C) lower; lower D) higher; higher
A ski resort will choose to remain open in the summer whenever its fixed costs are low enough
a. True b. False Indicate whether the statement is true or false
Suppose the price of A increases by 10 percent while the quantity demanded of B does NOT change. We would conclude that
A) the two goods are substitutes, but the cross elasticity of demand is not large. B) the two goods are complements, but the cross elasticity of demand is not large. C) the two goods are perfect substitutes. D) the two goods are not related.
An important condition required for economic growth is
A) economic freedom. B) a libertarian government. C) a totalitarian government. D) a democratic government. E) the incentive to limit international trade so that all economic growth remains within the country.