If a component of aggregate demand increases,
A) GDP in the United States is likely to increase less than that component of spending increased.
B) GDP in the United States is likely to increase more than that component of spending increased.
C) GDP in the United States is likely to decrease.
D) GDP in the United States will not change.
B
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If a bond was to pay off one year from now for $321 and the interest rate is 7 percent, what is the price of the bond?
A) $147 B) $279 C) $300 D) $342
Hurricane Katrina destroyed oil and natural gas refining capacity in the Gulf of Mexico which subsequently drove up natural gas, gasoline, and heating oil prices
Three years later, once the refining capacity was restored, these prices came back down. The restoration of refining capacity should A) move the economy up along a stationary short-run aggregate supply curve. B) move the economy down along a stationary short-run aggregate supply curve. C) shift the short-run aggregate supply curve to the left. D) shift the short-run aggregate supply curve to the right.