Unintended inventory changes
A. precipitate explosive inflations of highly unstable stagflation.
B. are less important in Keynesian than in classical models.
C. ensure that planned saving is always equal to planned investment.
D. are signals to business firms to increase or cut production.
D. are signals to business firms to increase or cut production.
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What is the difference between a normal good and an inferior good? Give an example of each
What will be an ideal response?
If demand is price inelastic, when price falls, the total revenue ______, and when price rises, the total revenue _____.
a. falls; remains constant b. remains constant; rises c. falls; rises d. rises; falls
Exhibit 1A-8 Straight line relationship
For the relationship shown in Exhibit 1A-8, suppose the price of hamburgers increases and hamburgers are a substitute for pizza. What change would occur on the graph?
A. There will be a movement upward and to the left along the curve. B. There will be a movement downward and to the right along the curve. C. The curve will shift. D. The slope of the curve will become steeper.
In order to predict changes in aggregate demand, it must be possible to forecast
A. changes in the demand for investment goods. B. changes in the demand for consumer goods. C. changes in the demand for money. D. All of the choices are correct.