The aggregate supply curve is drawn with
A. the price level on the vertical axis and nominal GDP on the horizontal.
B. nominal GDP on the vertical axis and real GDP on the horizontal.
C. the price level on the vertical axis and real GDP on the horizontal.
D. real GDP on the horizontal axis and the rate of inflation on the vertical.
Answer: C
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Suppose the adoption of a new software reduces the marginal cost of publishing books. For a given demand curve for books, this will be represented by:
a. an upward movement along the supply curve of books. b. a downward movement along the supply curve of books. c. an upward shift in the supply curve of books. d. a downward shift in the supply curve of books.
If an individual invests $20 in a bank deposit promising an interest of 12 percent per annum, compounded annually, he will receive $40 after 8 years
Indicate whether the statement is true or false
The Federal Deposit Insurance Corporation insures
A. savings accounts against unlawful transfer into checking accounts. B. bank deposits against the failure of an individual bank. C. that the bank will maintain sufficient required reserves. D. bank buildings and property against fire and theft.
Over the past 50 years, there has been an increase in spending on public education without a noticeable improvement in student performance. One explanation given by economists on why student performance has not improved is that
A. the quantity of educational services has not increased beyond the pre-subsidy equilibrium. B. schools are providing high-priced services that are not valued by parents. C. too much competition for educational services. D. not enough funds have been spent on public education.