Figure 10-5
In Figure 10-5, which graph best illustrates the situation of an economy reacting to a recessionary gap by reducing resource cost levels?
a.
(1)
b.
(2)
c.
(3)
d.
(4)
a
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The majority of the income earned in the United States is paid in
A) wages. B) rent. C) profit. D) dividends. E) interest.
Causation and Correlation are generally the same thing.
A. True B. False C. Uncertain
Luke recently attended a large pop culture convention in another state. What would be the money costs Luke incurred to attend the show?
a. the payments for the pass, airline ticket, and hotel bill b. the time he could have spent improving his musical ability c. the virus he caught at the crowded convention d. the annoyance of airport lines and security checks
Answer the following questions true (T) or false (F)
1. An increase in the real interest rate will decrease consumption and investment. 2. Retained earnings are always sufficient to finance a firm's rapid expansion in a high-growth economy. 3. Financial markets and financial intermediaries comprise the financial system.