What will be the result in a growing economy if increases in aggregate demand outpace rightward shifts of the long-run aggregate supply curve?
A) secular deflation
B) inflation accompanied by declines in real GDP
C) inflation accompanied by increases in real GDP
D) a decline in consumption spending
Ans: C) inflation accompanied by increases in real GDP
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Which of the following is an example of a macroeconomic aggregate?
A) Total fixed cost faced by a firm B) Income earned by a household C) Profit earned by an entrepreneur D) The annual inflation rate
The personal distribution of income shows
A) that labor receives the largest percentage of total income. B) how profit accounts for the largest fraction of total income. C) that the richest 20 percent of households receive 23 percent of total income. D) that interest accounts for most of the income of the richest 20 percent of households. E) that the poorest 20 percent of households receive less than 4 percent of total income.