Aggregate demand
A) decreases if expected future income rises.
B) increases if the exchange rate rises.
C) increases if government expenditures decrease.
D) increases if the expected inflation rate increases.
E) increases if aggregate supply increases.
D
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Gross investment equals net investment plus
A) capital. B) capital gains. C) depreciation. D) dividends paid to the owners of the company.
New growth theory predicts that
A) economic growth is only temporary. B) economic growth can last indefinitely. C) economic growth is eroded by changes in taxes. D) government policies can do nothing to foster increased growth.
If five firms constitute all of the producers in the wristwatch industry, we would call this market a duopoly.
Answer the following statement true (T) or false (F)
Use the figure below to answer the following question.
An increase in supply would best be reflected by
A. a movement from point 3 to point 4. B. a shift from supply curve C to supply curve A. C. a movement from point 5 to point 4. D. a shift from supply curve B to supply curve A.