An advantage of the decision tree is that
A) it eliminates the need for calculating the cost of capital.
B) it eliminates the need for calculating probabilities.
C) it causes the analyst to consider important events that may occur in the course of the project, and decisions and actions that may have to be undertaken.
D) All of the above
C
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Computing the CPI is important because it provides ________
A) a rough measure of the cost of living B) it is used as a benchmark in labor negotiations C) government uses it to index entitlements, such as social security benefits, so that beneficiaries do not lose purchasing power in periods of inflation D) all of the above E) none of the above
In the intermediate range of the aggregate supply curve, if government spending increases caused the aggregate demand curve to shift outwards, which of the following ismostlikely to occur?
a. The price level and real GDP will both rise. b. The price level will not change, but real GDP will increase. c. The price level will rise, but real GDP will not change. d. Both the price level and real GDP will not change.