In the long run aggregate:
A. demand is fixed.
B. supply is fixed.
C. demand tends to shift to the right.
D. supply tends to shift to the left.
B. supply is fixed.
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To be unemployed is to be
A) without a job, but actively looking for a job. B) without any source of income. C) without an identity. D) all of the above.
Investment spending is
A) directly related to the interest rate. B) inversely related to the interest rate. C) directly related to real disposable income. D) inversely related to real disposable income.
If a consumer purchases more of good A when her income falls, good A is an inferior good
a. True b. False Indicate whether the statement is true or false
If inflation expectations change as a result of an expansionary fiscal policy, this causes
A. the long-run Phillips curve to shift. B. the short-run Phillips curve to remain constant. C. the short-run Phillips curve to shift. D. a movement along the short-run Phillips curve.