If inflation is slow to change after an increase in the growth rate of spending, then:
A. real growth must decrease.
B. real growth must increase.
C. interest rates must decrease.
D. interest rates must increase.
Answer: B. real growth must increase.
Economics
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Refer to Figure 13-1. Ceteris paribus, an increase in firms' expectations of the future profitability of investment spending would be represented by a movement from
A) AD1 to AD2. B) AD2 to AD1. C) point A to point B. D) point B to point A.
Economics
In Michael Porter's five competitive forces model, what do the competitive forces determine?
What will be an ideal response?
Economics