If the demand for apples increases at the same time the supply of apples falls, the price of apples will tend to fall
a. True
b. False
Indicate whether the statement is true or false
False
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The graph depicting the inverse relationship between the economy's rate of unemployment and rate of inflation is called the
a. Laffer curve b. aggregate expenditure model c. Keynesian cross d. Phillips curve e. consumption curve
ABC Corp. is considering an investment project that costs $500 today. It expects the project will yield income of $200 at the end of years 1, 2, and 3. The interest rate must be ________ for the firm to undertake the project.
A. exactly equal to 10% B. at least 11% C. no more than 9% D. It is indeterminate from the given information.
Which of the following is not a component of aggregate demand?
a. Investment expenditures b. Government expenditures c. Net exports d. All of the above are components of aggregate demand.
Suppose a consumer spends her income on two goods: music CDs and DVDs. The price of a CD is $8, and the price of a DVD is $20 . If we graph the budget constraint by measuring the quantity of CDs purchased on the vertical axis and the quantity of DVDs on the horizontal axis, what is the slope of the budget constraint?
a. -5.0 b. -2.5 c. -0.4 d. The slope of the budget constraint cannot be determined without knowing the income the consumer has available to spend on the two goods.