The intersection between the long-run aggregate supply and aggregate demand curves determines the:
a. level of full-employment real GDP.
b. level of prices (CPI)
c. money supply.
d. marginal product.
e. both a and b.
e
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During business cycle expansions when income and wealth are rising, the demand for bonds ________ and the demand curve shifts to the ________, everything else held constant
A) falls; right B) falls; left C) rises; right D) rises; left
Budweiser typically purchases several 30 second advertising spots during the Super Bowl at a very high cost. Miller Brewing Co typically does not advertise during the Super Bowl. Which of the following is correct?
a. Budweiser chooses to signal during the Super Bowl, while Miller Brewing Co. does not. b. Budweiser chooses to screen during the Super Bowl, while Miller Brewing Co. does not. c. Miller does not advertise during the Super Bowl because it has a superior product and the audience already knows that. d. Budweiser's advertisements during the Super Bowl are entertaining but convey no information about the quality of its products.