As real GDP ________, aggregate planned expenditure ________
A) decreases; remains the same, because it is independent from real GDP
B) increases; remains the same, because the increase in some components is precisely offset by the decrease in others
C) increases; decreases
D) decreases; increases
E) increases; increases
E
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If an economy is producing inefficiently, it is
A. possible to increase production of all goods simultaneously. B. possible to increase production of one good at the expense of another. C. not possible to increase production of any good. D. not possible to increase economic growth. E. possible to increase production with no effort.
Expected utility theory assumes that individuals have utility functions over a composite consumption good.
Answer the following statement true (T) or false (F)
Since 1950,
A) the average length of expansions in the United States have become longer as compared to before 1950. B) the average length of expansions in the United States have become shorter as compared to before 1950. C) economic expansions in the United States have been so short that expansions barely exist. D) the average length of expansions in the United States are about the same length as compared to before 1950.
The gold standard was helpful in stabilizing economies during the Great Depression
Indicate whether the statement is true or false