Inflation is defined as:
A. an increase in the overall level of prices.
B. the rate of growth in nominal GDP.
C. a situation where all prices in the economy rise simultaneously.
D. the growth phase of the business cycle.
Answer: A
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In order to help assure that all relevant factors will be considered, the capital-expenditure selection process should include the following steps except:
a. generating alternative capital-investment project proposals b. estimating cash flows for the project proposals c. reviewing the investment projects after they have been implemented d. allocate manpower to the various divisions within the firm e. a and d
What is an expansionary gap of real GDP? How is this expansionary gap eliminated in an economy?
Figure 17-8
Refer to . If this country allows free trade in wagons,
a.
consumers will gain and producers will lose.
b.
consumers will lose and producers will gain.
c.
both consumers and producers will gain.
d.
both consumers and producers will lose.
When an inverse relationship is graphed, the resulting line or curve is:
A. horizontal. B. vertical. C. upward-sloping. D. downward-sloping.