The classical economists argued that planned saving and planned investment will always be equal because of changes in
A. wages.
B. the price level.
C. the interest rate.
D. the level of real disposable income.
Answer: C
You might also like to view...
If the economy is at point 1 in Figure 13.1 and the central bank issues a credible statement that it can and will cause inflation to rise, what happens next?
A) the economy moves to point 2 B) the economy remains at point 1 C) the economy moves to the left along the AS curve D) the AS curve shifts down, causing both output and inflation to decline E) the AS curve shifts up, causing both output and inflation to rise
Demand in the refreshment beverage market has been changing due to
A) changes in income. B) changes in taxes and subsidies. C) changes in the number of buyers. D) changes in tastes and preferences.
In a Mexican factory, each worker can produce 1/8 of a vase or 1/16 of a statue per hour. If there are 400 workers at the factory, the opportunity cost of one statue is
a. 1/2 of a vase b. 1/8 of a vase c. 8 vases d. 16 vases e. 2 vases
If the price level falls, what will happen to the aggregate supply curve?
a. It will shift outward. b. It will shift inward. c. Nothing. d. It will get steeper. e. It will get flatter.