Which of the following would indicate the beginning of an expansionary phase in an economy?
a. A minor increase in the number of new firms
b. A decline in stock market prices
c. An improvement in consumer confidence
d. A slowdown in housing construction
e. A decrease in the number of orders for new equipment
c
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President Obama has discussed raising income taxes for individuals earning over $250,000 in income. Explain how these higher income taxes will affect the aggregate demand curve
What will be an ideal response?
The lottery this evening is worth $50 million dollars in your state. There are two people in your neighborhood that are buying lottery tickets. One is a student with little financial knowledge or business acumen
The other is a successful entrepreneur that is earning 20% rate of return on his business. Which of these people is likely to check off the "cash" option on the ticket and which is likely to choose the structured payout and why?
What would happen if employment is continually above or below its full-employment level?
a. the aggregate demand curve would shift to move the economy back to full employment. b. the economy's self-correcting mechanism would move the economy back to full employment. c. the aggregate supply curve would become horizontal. d. the aggregate supply curve would become steeper. e. the economy's self-correcting mechanism would break down.
Measured in 2014 dollars, real GDP per person in the United States in 2014 was about 10 times that in
a. China. b. India. c. Indonesia. d. Pakistan.