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

Economics

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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

Economics

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

Economics

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

Economics

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.

Economics