A real flow in the circular flow diagram is
i. a firm's payments of wages to its workers.
ii. a household's purchase of a new car.
iii. a farmer's use of land to grow corn.
A) i, ii and iii B) ii only C) ii and iii D) i only E) i and iii
C
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Suppose, over the past year, the real interest rate was 3 percent and the inflation rate was 1 percent
a. The dollar value of savings increased at 2 percent, and the value of savings measured in goods increased at 3 percent. b. The dollar value of savings increased at 1 percent, and the value of savings measured in goods increased at 2 percent. c. The dollar value of savings increased at 3 percent, and the value of savings measured in goods increased at 1 percent. d. The dollar value of savings increased at 4 percent, and the value of savings measured in goods increased at 3 percent.
Supply-side theories of the business cycle focus on how improper incentives lead to the unwillingness of producers to supply more goods and services at existing prices.
Answer the following statement true (T) or false (F)