Refer to the information provided in Figure 26.4 below to answer the question(s) that follow.
Figure 26.4Refer to Figure 26.4. During the 2008-2009 recession, many firms in the United States reduced investment in new capital. If the economy was originally at Point A, this would have caused a movement to Point
A. E.
B. B.
C. C.
D. D.
Answer: A
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According to your textbook, expansionary monetary policy
A) encourages entrepreneurs to invest in projects that only appear profitable. B) creates a temporary "boom," or economic expansion. C) will ultimately be followed by a "bust," as entrepreneurs learn of their forecasting errors. D) tends to generate all of the above.
Due to an increase in real GDP:
a. Real consumption rises and real gross private domestic investment falls. b. Real consumption rises and real net exports fall. c. Real gross private domestic investment rises and real net exports rise. d. Real consumption rises and real gross private domestic investment remains the same. e. None of the above.
The economy is initially in long-run equilibrium. The AD curve shifts to the right and the price level rises. Assuming that the economy is self-regulating, the SRAS curve will shift to the left and the price level will rise even further. If the price level now remains constant, what have we witnessed?
A) one-shot demand-induced inflation B) continued demand-induced inflation C) one-shot supply-induced inflation D) one-shot inflation that was partly demand-induced and partly supply-induced E) continued supply-side inflation
A patent is a government granted exclusive right to sell a product for a period of time.
Answer the following statement true (T) or false (F)