A new technology that decreases production costs will shift the supply curve of a perfectly competitive firm to the left

The circular flow model shows that goods and services flow from

A) businesses to households. B) households to business. C) the factor market to businesses. D) the goods market to businesses. E) the factor markets to the goods markets.

Refer to Figure 10-3. Which of the following is consistent with the graph depicted above?

A) The government runs a budget deficit. B) An expected recession decreases the profitability of new investment. C) Taxes are changed so that real interest income is taxed rather than nominal interest income. D) Technological change increases the profitability of new investment.