Which of the following is NOT included in the flow of investment spending that is part of total planned expenditures in the economy?
A) purchases of corporate stock B) inventory investment
C) fixed investment D) spending on capital goods
A
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If the money prices of resources changes
A) the LAS curve shifts. B) the SAS curve shifts. C) the AD curve shifts. D) the macroeconomic equilibrium is unaffected.
If in order to sell its bonds the government raises interest rates on the bonds it offers, financing government spending by public debt, it
a. may end up crowding out private investment and slowing economic growth in the private sector b. may end up crowding out public investment and increasing economic growth in the private sector c. may slow down inflation and maintain economic growth d. makes it cheaper for private industry to finance its own investment e. will convert deficits to surpluses but at the expense of stable prices
When a country experiences high inflation and unemployment simultaneously, which of the following problems should be addressed first?
a. High price level b. High unemployment c. Low aggregate demand d. Low aggregate supply
Inflation can be measured by the
a. change in the consumer price index. Inflation in the U.S. has averaged about 2.5% over the last 80 years. b. change in the consumer price index. Inflation in the U.S. has averaged about 4% over the last 80 years. c. percentage change in the consumer price index. Inflation in the U.S. has averaged about 3.6% over the last 80 years. d. percentage change in the consumer price index. Inflation in the U.S. has averaged about 4% over the last 80 years.