One reason college students do not study enough to get high grades is that they are unrealistic about their future behavior

Recall the Application. Assume that immediately before the housing bubble burst, you purchased a $250,000 home and took out a $225,000 mortgage to make the purchase. When the bubble burst, the value of your home fell by 20 percent

The value of the home is now ________ and you owe the mortgage company ________. A) $180,000; $225,000 B) $200,000; $180,000 C) $200,000; $225,000 D) $180,000; $200,000

Which of the following is a true statement?

A. Firms and resource suppliers generally find it easier to reduce prices than to raise them. B. As the price level increases, interest rates will rise and therefore consumption and investment spending will also rise. C. An initial increase in aggregate demand may cause a further increase in aggregate demand because higher prices mean higher incomes. D. A decline in aggregate demand will primarily affect real output and employment if prices are inflexible downward.