Answer the following questions true (T) or false (F)
1. The index of leading economic indicators of business activity is designed to indicate business fluctuations before they occur.
2. The producer price index accounts for changes in the prices of goods and services purchased by consumers.
3. The short run Phillips curve illustrates the relationship between the rate of inflation and the unemployment rate.
1. TRUE
2. FALSE
3. TRUE
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What happens when the interest rate on newly issued bonds increases?
a. The price of previously issued bonds with the lower rate decreases but still is higher than its face value. b. The price of previously issued bonds with the lower rate does not change as the face value has not changed. c. The price of previously issued bonds with the lower rate decreases to less than its face value. d. The price of previously issued bonds with the lower rate increases to more than its face value.
Consumer surplus is the
a. amount of a good consumers get without paying anything. b. amount a consumer pays minus the amount the consumer is willing to pay. c. amount a consumer is willing to pay minus the amount the consumer actually pays. d. value of a good to a consumer.
Domestic income has a ________ relationship with net export spending.
A. constant B. positive C. secondary D. negative
Refer to the information provided in Table 21.4 below to answer the question(s) that follow. Table 21.4
Refer to Table 21.4. The value for personal income in billions of dollars is
A. 870. B. 890. C. 950. D. 960.