Economic Policy Answers

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Which is true about investments and risk?

Low-risk investments have a high return over the long run.

High-risk investments usually fail.

Safe investments are always somewhat profitable.

Every investment carries some degree of risk.

This is a graph showing price and total output in the short and long run. According to this graph, how does supply behave in the long run?

Output remains constant.

Output increases.

Output cannot be predicted.

Output decreases.

Economists use gross national product (GNP) to measure

economic output within a nation, regardless of ownership.

the output of foreign-owned businesses within a nation.

the output of a nation’s citizens, regardless of where they are.

any business activity taking place outside a country.

What is the relationship between aggregate demand and the price level?

They are inversely related.

They are directly related.

They are unrelated.

They fluctuate randomly.

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