An increase in investment ________ aggregate demand, the aggregate demand curve shifts ________ and the economy is in the ________ phase of the business cycle
A) increases; leftward; recession
B) increases; rightward; recession
C) increases; rightward; expansion
D) decreases; leftward; recession
E) decreases; rightward; expansion
C
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For economic freedom to exist,
A) copyright laws must be abolished and markets supervised by the government. B) democracy must exist. C) human capital must be given away free. D) property rights must be protected and markets must be free. E) money must be free.
An economy that experiences a fall in the price level over two consecutive quarters necessarily experiences
A) a recession. B) inflation. C) deflation. D) disinflation.
Other things being equal, when average productivity falls:
A. average fixed cost must rise. B. marginal cost must rise. C. average variable cost must rise. D. average total cost must rise.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4Refer to Figure 2.4. The economy moves from Point A to Point D. This could be explained by
A. an increase in economic growth. B. an improvement in technology. C. a reduction in unemployment. D. a change in society's preferences for motorcycles versus hybrid cars.