The “investment” component of aggregate demand will include all of the following except
A. expenditures of business firms on new plants.
B. expenditures of business firms on new equipment.
C. resales of existing physical assets.
D. household spending on new homes.
Answer: C
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The figure above shows an education market in which the government is providing households with vouchers. What is the dollar value of a voucher in this market?
A) $4,000 B) $8,000 C) $12,000 D) $16,000 E) None of the above answers is correct.
College education tends to result in a positive externality because the recipient receives the full benefit of the education
Indicate whether the statement is true or false
The "Prisoners' Dilemma" is an example of a cooperative game
a. True b. False Indicate whether the statement is true or false
In the short-run macro model, planned investment is defined as
a. plant and equipment purchases by business firms plus inventory changes b. plant and equipment purchases by business firms plus new home construction c. plant and equipment purchases by business firms d. new home construction plus inventory changes e. inventory changes