Which would be one of the factors that shift the aggregate demand curve? A change in:
a. Productivity
b. Profit expectations on investment projects
c. Domestic resource availability
d. Prices of imported resources
Answer: b. Profit expectations on investment projects
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When the Fed buys U.S. government securities from a bank, the Fed
A) loans the money needed to buy the securities to the bank. B) increases the bank's reserves at the Fed. C) obtains the money for the purchase from the U.S. Treasury. D) decreases the monetary base and raises the federal funds rate.
A labor union acts as a monopsony seller of labor.
Answer the following statement true (T) or false (F)
Table 5.2National Income Accounts (dollar figures are in billions)Expenditures for consumer goods and services$2,850Exports$300Government purchases of goods and services$810Social Security taxes$295Net investment$510Indirect business taxes$445Imports$450Gross investment$700Corporate income taxes$190Personal income taxes$875Corporate retained earnings$210Net foreign factor income$0Government transfer payments to households$780Net interest payments to households$20On the basis of Table 5.2, national income is
A. $3,785 billion. B. $4,020 billion. C. $3,595 billion. D. $2,475 billion.
Suppose the quantity of oranges demanded is less than the quantity supplied. Then
A) the market still clears, because consumers can buy all the oranges they wish at the prevailing market price. B) the market still clears, because producers can sell all the oranges they wish at the prevailing market price. C) the market clears, but is not fully coordinated. D) oranges are no longer scarce goods. E) none of the above is true.