The four major components of aggregate demand are consumption, investment, government purchases of goods and services, and net exports
a. True
b. False
Indicate whether the statement is true or false
True
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A decrease in the money supply, in the short run (before the price level has adjusted to restore general equilibrium), causes output to ________ and the real interest rate to ________.
A. rise; fall B. fall; fall C. fall; rise D. rise; rise
Recall the Application. The idea regarding the relationship between tax rates and tax revenues proposed by Yu Juo is very similar to the idea proposed by economist
A) Arthur Laffer. B) Adam Smith. C) Ben Bernanke. D) David Ricardo.
The price of a new textbook is $120 in one year and is $150 two years later, while the price of a used copy of the text increased from $40 to $60. The relative price of a new textbook
A) increased from 3 to 4.5. B) decreased from 0.8 to 0.67. C) decreased from 3 to 2.5. D) remained constant.
Which of the following is the most common form of a business organization?
A) corporation B) partnership C) sole proprietorship D) subchapter S corporation