Declining real GDP for two quarters in a row is often called a recession. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
Changes in business inventories are not considered part of gross private domestic investment spending. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
Because prices are slow to move in the short-run, when the Federal Reserve lowers the federal funds rate A) nominal interest rates rise. B) real interest rates fall. C) inflation falls. D) real interest rates rise. ANSWER B
Date: September 10th, 2020
Which of the following barriers to entry is is most likely to result in the creation of of new products and production processes? A) Patents. B) Licenses. C) Ownership of an essential raw material. D) Significant economies of scale. ANSWER A
Date: September 10th, 2020
A depreciation of the U.S. dollar would shift the: A) aggregate demand curve rightward. B) aggregate demand curve leftward. C) aggregate supply curve rightward. D) aggregate supply curve leftward. ANSWER A
Date: September 10th, 2020
Unemployment compensation is an example of: A) non-discretionary expenditures. B) discretionary expenditures. C) taxes. D) none of the above. ANSWER A
Date: September 10th, 2020
Features of the U.S. federal government expenditure and taxation programs that tend to automatically slow the economy during times of high economic activity and boost the economy during periods of recession are called: A) discretionary expenditures. B) automatic stabilizers. C) non-automatic stabilizers. D) none of the above. ANSWER B
Date: September 10th, 2020
According to the text, much of the increase in productivity that has occurred more recently in the fast food industry was the result of improvements in capital and technology. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
Examples of discount bonds include A) U.S. Treasury bills. B) corporate bonds. C) U.S. Treasury notes. D) municipal bonds. ANSWER A
Date: September 10th, 2020
Corporations receive funds when their stock is sold in the primary market. Why do corporations pay attention to what is happening to their stock in the secondary market? What will be an ideal response? ANSWER The existence of the secondary market makes their stock more liquid and the price in the secondary market sets […]
Date: September 10th, 2020
