The total of all planned expenditures in the entire economy is
A. aggregate demand.
B. LRAS.
C. aggregate supply.
D. the open economy effect.
Answer: A
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If demand is inelastic, an increase in the price of a good will cause total revenue to:
a. fall. b. remain constant since the decrease in quantity sold is exactly offset by the price increase. c. rise. d. rise if it is a normal good and fall if it is an inferior good.
An unplanned economy operating under laissez faire
a. allocates resources by market supply and demand. b. cannot respond to basic questions about production and distribution. c. shows breakdowns with frequent surpluses and shortages. d. allocates goods and services under government subsidy.
Consider the following economic agents: a. the government b. consumers c. producers Who, in a modern mixed economy, decides what goods and services will be produced with the scarce resources available in that economy?
A) the government B) producers C) consumers D) consumers and producers E) the government, consumers, and producers
The annual rate of inflation can be found by subtracting:
A. the real income from the nominal income. B. last year's price index from this year's price index. C. this year's price index from last year's price index and dividing the difference by this year's price index. D. last year's price index from this year's price index and dividing the difference by last year's price index.