Which of the following most likely occurs when an inflationary gap exists?
A. Rising inventories.
B. More layoffs.
C. Excessive saving.
D. Producers will use overtime shifts and strain capacity.
Answer: D
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Nick is prepared to spend $600 for a phone, but he is able to buy one on sale for $400. In this case, consumer surplus is ______.
a. $800 b. $600 c. $400 d. $200
Which of the following would cause an outward shift of aggregate demand?
a) an increase in interest rates b) an increase in tax rates c) the expectation of higher income d) improvements in technology e) an increase in imports
The yield of a stock is the
A. dividend divided by the closing price per share. B. dividend divided by the average daily price of the stock. C. closing price divided by the 52-week low price. D. dividend divided by the opening price per share.