The sum of all income earned by resource suppliers in an economy is smaller than aggregate expenditure because some income is saved
Indicate whether the statement is true or false
false
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Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________. 
A. Rising; A B. Falling; A; C C. Falling; B: C D. Rising; A; C
The change reflected in the above figure might be a result of
A) a decrease in the real wage rate. B) an increase in the real wage rate. C) an increase in the money wage rate. D) a rise in the price level. E) a decrease in the money wage rate.
The DeBeers Company of South Africa was able to block competition through
A) ownership of an essential input. B) differentiating its product. C) government-imposed barriers. D) economies of scale.
The reason relative purchasing power parity (RPPP) is better at predicting exchange rates than absolute purchasing power parity (APPP) is because:
a. Actually, it is the other way around. APPP has been shown empirically and theoretically to be a more accurate way to predict exchange rates. b. APPP deals only with countries that have some sort of imbalance like hyperinflation. RPPP deals with any and all countries, which makes the job of predicting exchange rates easier. c. APPP has to begin and end in parity. RPPP just requires that the initial disequilibrium remain the same. d. APPP predictions are often biased because of central bank controls, sticky prices, and protectionism. RPPP can abstract from these problems.