If the population increases and input prices decrease, the equilibrium quantity of a product will definitely increase
Indicate whether the statement is true or false
TRUE
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In the aggregate expenditures diagram, the ________ line relates planned aggregate expenditure to output and the ________ line represents the condition that aggregate expenditure (AE) equals equilibrium output (Y).
A. 45°; aggregate expenditure B. consumption function; 45° C. aggregate expenditure; 45° D. 45°; consumption function
If unemployment persists for a long period of time, the natural rate of unemployment rises
Indicate whether the statement is true or false
In the money market, a condition of excess demand for money can be eliminated by a ________ in aggregate output or a ________ in the interest rate, everything else held constant
A) rise; rise B) rise; fall C) fall; rise D) fall; fall
With only two goods, if the income effect is in the opposite direction as the substitution effect but the substitution effect dominates then the good is
a. normal b. inferior but not Giffen c. Giffen d. There is not enough information to answer.