Why is judging trends in economic indicators important to managers?
What will be an ideal response?
Managers need to be able to react to both monetary and fiscal policy changes and other changes in aggregate spending in order to determine the optimal strategies for their firms and industries. Managers need to examine and make judgments about the trends in a variety of economic indicators which is a difficult one as different indicators may given conflicting signals as to the future course of the economy.
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Which of the following are required for economic growth?
i. more goods and services produced per hour of work ii. an increase in the average hours of labor per person iii. an increase in prices A) i only B) ii and iii C) ii only D) i and iii E) i and ii
An increase in consumer wealth shifts the consumption function downward
a. True b. False Indicate whether the statement is true or false