An economy that experiences a fall in the price level over two consecutive quarters necessarily experiences
A) a recession.
B) inflation.
C) deflation.
D) disinflation.
C
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Disposable income is National income
A) less taxes collected from households and firms by the government. B) plus net taxes collected from households and firms by the government. C) less net taxes collected from firms by the government. D) less net taxes collected from households by the government. E) less net taxes collected from households and firms by the government.
A monopsony has an upward sloping supply curve because
A) diminishing marginal product to scale does not exist in a monopsony. B) each additional unit of labor costs less. C) when more units of labor are hired, all laborers must receive the higher wage. D) when more units of labor are hired, only the new workers receive the higher wage.
In the real world, the actual multiplier is ____ the simplified multiplier.
A. much larger than B. slightly larger than C. equal to D. much smaller than
The interest rate effect is one of the
A) reasons why an AD curve is downward-sloping. B) shifters of an AD curve. C) reasons why a short-run aggregate supply curve can be derived. D) shifters of a short-run aggregate supply curve.