Consumer spending ________ and investment spending ________
A) follows a smooth trend; is the most stable component of aggregate expenditure
B) is very volatile and subject to fluctuations; follows a smooth trend
C) follows a smooth trend; is more volatile and subject to fluctuations
D) is very erratic; is also erratic, but less erratic than consumer spending
C
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The term "price supports" refers to a
a. shortage. b. surplus. c. price ceiling. d. price floor.
Based on the circular flow diagram, which of the following is part of a circular flow?
a. rest of the world’s expenditures on exports and government purchases of goods
b. household expenditures on goods and government purchases of goods
c. household expenditures on goods and firms paying wages
d. taxes paid to government and firms borrowing for investment
The following graph shows the production possibilities curve for the economy with only two members, Silvia and Art. Silvia can produce either 50 pounds of beef or 2 computers per week, and Art can produce 100 pounds of beef or 1 computer per week. Both of them work 40 weeks per year.
With the opportunity to trade, Silvia can trade all the computers she can produce per year if she specializes in producing computers, for ________ pounds of beef.
A. 3,000 B. 2,000 C. 6,000 D. 4,000
One of the main roles of a central bank is:
A. accepting deposits from households and other private individuals. B. coordinating the banking system to ensure a sound economy. C. funding federal government spending. D. managing the nation's money demand.