If Eastland's consumer confidence rises, what would happen to macroeconomic equilibrium in the short-run if the short-run aggregate supply curve is upward sloping?
A) AD shifts right, aggregate output increases, and prices fall.
B) AD shifts right, aggregate output increases, and prices rise.
C) AD shifts left, aggregate output decreases, and prices fall.
D) AD shifts left, aggregate output decreases, and prices rise.
Ans: B) AD shifts right, aggregate output increases, and prices rise.
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Issuing stock is riskier for corporations since there is a legal requirement to pay dividends.
Answer the following statement true (T) or false (F)
Jorge, a computer programmer, was laid off when his firm went out of business. He began to look for work, but was struck by a car and his hands and one leg were broken. He is unable to use the computer to seek jobs, or to go to interviews for jobs. It is now week 5 of 6 weeks in his cast. According to the current rules, Jorge will probably be classified as:
a. employed b. unemployed c. out of the labor force d. unemployable
The total value of goods and services produced within a nation's borders, measured in constant prices refers to:
A. Nominal GDP. B. Real inflation. C. Per capita GDP. D. Real GDP.
Two items which have a negative cross price elasticity of demand are referred to as
A) luxury goods.
B) inferior goods.
C) substitutes.
D) complements.