Leading, coincident, and lagging indicators are based on the concept that:
A) expectations of future inflation is the driving force of the economy.
B) expectations of future profits are the driving force of the economy.
C) expectations of future unemployment is the driving force of the economy.
D) none of the above.
B
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Recessions typically cause the unemployment rate to ________ and the inflation rate to ________
A) fall; fall B) fall; rise C) rise; fall D) rise; rise
Consider the market for capital equipment. Suppose the value of the marginal product of capital equipment increases. Holding all else constant, the equilibrium rental price of capital equipment will
a. increase. b. decrease. c. not change. d. It is not possible to determine what will happen to the equilibrium rental price of capital equipment.
Lowering the required reserve ratio raises the simple deposit multiplier
Indicate whether the statement is true or false
If a 10 percent increase in the price of one good results in no change in the quantity demanded of another good, then it can be concluded that the two goods are:
A. Complementary goods B. Substitute goods C. Independent goods D. Normal goods