What is the difference between aggregate expenditure and aggregate demand?
What will be an ideal response?
Aggregate expenditure is the total amount of spending in the economy and aggregate demand is the relationship between the price level and the level of planned aggregate expenditure.
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Milton Friedman and Edmund Phelps contributed which insight(s) to Phillips curve analysis?
A) that inflation is directly related to expectations of future inflation B) that inflation is negatively related to the unemployment gap C) that in the long run unemployment will be at the natural rate D) all of the above E) none of the above
A substitute is a good or service:
a. that can be used in place of another good or service. b. used with another good or service. c. that cannot be replaced with another good or service. d. that can have no demand for itself.
The period from 1983 to 1990 was characterized by
a. decreasing budget deficits and increasing trade surpluses. b. persistently high inflation. c. below average rates of real GDP growth. d. consistent growth of real GDP and decreasing rates of inflation.
The basic principles of economics suggest that
a. markets are seldom, if ever, a good way to organize economic activity. b. government should become involved in markets when trade between countries is involved. c. government should become involved in markets when those markets fail to produce efficient or fair outcomes. d. All of the above are correct.