Disinvestment occurs when:
A. Businesses sell machinery and equipment to one another
B. The prices of investment goods rise faster than the prices of consumer goods
C. Businesses have larger inventories at the end of the year than they had at the start
D. The consumption of private fixed capital exceeds gross private domestic investment
D. The consumption of private fixed capital exceeds gross private domestic investment
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Refer to the diagram. The move of the economy from c to e on short-run Phillips Curve PC 2 would be explained by an:
A. increase in aggregate demand in the economy.
B. increase in aggregate supply in the economy.
C. actual rate of inflation that is less than the expected rate.
D. actual rate of inflation that exceeds the expected rate.
Which of the following is an accurate statement concerning the macroeconomy of the United States?
A. Politics never takes precedence over the country's economic problems. B. The goals of full employment, price stability and vigorous economic growth are frequently met. C. The ups and downs of the business cycle have been more severe since World War II. D. The economy continues to experience the ups and downs of the business cycle.