The country of Mu has continuous strong economic growth and a persistently steady price level. This situation is most likely the result of aggregate demand growing ________ aggregate supply.
What will be an ideal response?
at much the same pace as long-run
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Gross income net of taxes is known as ________
A) Gross Domestic Product, or GDP B) disposable income C) Gross Domestic Product per capita D) retained earnings
Firms tend to raise the price of their goods after acquiring a firm that sells a substitute because
a. They lose market power b. There is an increase in the overall demand for their products c. The bundle has a more elastic demand than individual goods d. The bundle has a more inelastic demand than individual goods
One way to overcome an adverse selection problem when buying a used car is to hire an independent mechanic to inspect the car before making a purchase
a. True b. False Indicate whether the statement is true or false
When a country experiences capital flight its currency
a. appreciates and net exports rise. b. appreciates and net exports fall. c. depreciates and net exports rise. d. depreciates and net exports fall.