In the long run,
a. the natural rate of unemployment depends primarily on the level of aggregate demand.
b. inflation depends primarily upon the money supply growth rate.
c. there is a tradeoff between the inflation rate and the natural rate of unemployment.
d. All of the above are correct.
b
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Expenditures on advertising ________
A) can lower average total cost if the advertising increases the quantity sold by a large enough amount B) cannot lower average total cost because when a firm advertises it increases its costs C) always lower average total cost because whenever a firm advertises, it increases the quantity sold D) are variable costs so do not affect the average total cost
A firm's external financing need is met by:
a. debt or equity. b. owners' equity, including retained earnings. c. net working capital and retained earnings. d. net income and retained earnings. e. retained earnings.
When you compare the effects of government spending on aggregate demand with the effects of taxes on aggregate demand, the effects of government spending are
A. smaller. B. larger. C. the same. D. impossible to predict.
In an attempt to bring lenders and borrowers together following the financial crisis of 2008, the Federal Reserve made a large amount of new funds available to financial markets. Any of these new funds that were obtained by banks but were not loaned out
would be classified as ________ of the banks. A) required reserves B) excess reserves C) deposits D) liabilities