On the graph above, consider a point A at which output is greater than potential output. At this point, ________
A) the inflation rate will rise
B) output will rise
C) potential output will rise
D) the aggregate demand curve will shift to the left
E) none of the above
A
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Which of the following is NOT true about dead capital?
A) Companies will be less likely to want to invest when a country has a lot of dead capital. B) Dead capital can inhibit economic growth. C) Dead capital will lead to higher investment returns. D) Dead capital can lead to a situation where resources are not efficiently employed.
When a corporation uses profits to pay for the purchase of new capital equipment, this is known as
A) reinvestment. B) a coupon payment. C) dividend. D) collusion.
If the government sets a minimum wage which is more than the equilibrium wage, the firms tend to demand more labor
a. True b. False Indicate whether the statement is true or false
If we consider the equation PAE = A + bY the part that corresponds to the MPC when we make simplifying assumptions is:
A. b B. Y C. A D. PAE