If Happy Avocados, a ready-made guacamole manufacturer, contracts with an outside supplier to produce avocados, this is an example of ________.
A) outsourcing
B) forward integration
C) divestiture
D) backward integration
A) outsourcing
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When the velocity of circulation equals 4 in 2010, this fact means that
A) consumers held four dollars in wealth for each dollar they spent in 2010. B) on average, each dollar of money in the economy purchased four dollars of goods and services in GDP in 2010. C) for each additional dollar of money injected into the economy, the price level rose 4 percent in 2010. D) real output of goods and services in GDP rose by four dollars for each additional dollar of money consumers saved.
The rule of 70 is: a. the ratio of 70 to the growth rate of a nation
b. the sum of 70 and the growth rate of a nation. c. the difference between 70 and the growth rate of a nation. d. the product of 70 and the growth rate of a nation.
The exchange rate £/$ is an example of a:
a. Real, effective exchange rate. b. Real, bilateral exchange rate. c. Nominal, effective exchange rate. d. Nominal, bilateral exchange rate.
Refer to the accompanying figure.
Starting from long-run equilibrium at point C, an adverse inflation shock that increases inflation from ? to ?1 will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies.
A. A; C B. A; B C. B; A D. B; C