Autonomous expenditure is the component of
A) induced expenditure that changes when in real GDP changes.
B) aggregate planned expenditure that changes only when government expenditure on goods and services change.
C) aggregate expenditure that does not change when real GDP changes.
D) aggregate expenditure that does not change when the interest rate changes.
E) aggregate expenditure that changes when real GDP changes.
C
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Refer to the table below. To increase output from 33 to 66 units requires ________ extra employee-hour(s); to increase output from 66 to 99 units requires ________ extra employee-hour(s).OutputPer DayNumber ofEmployeeHours Per Day00331662994132716511
A. 2; 4 B. 1; 1 C. 2; 1 D. 1; 2
The MPC is equal to the
A) level of consumption expenditure divided by the level of total disposable income that brought it about. B) change in consumption expenditure divided by the total disposable income that brought it about. C) change in disposable income divided by the change in consumption expenditure. D) level of consumption divided by the change in disposable income that brought it about. E) change in consumption expenditure divided by the change in disposable income that brought it about.
Gordon believes that the expansion which began in 1982 did so because of the
A) expansionary monetary policy which was pursued. B) Reagan tax cuts, the passage of the Economic Recovery Act in 1981. C) increases in consumer and business firm optimism concerning future business conditions. D) A and B are both correct.
Use the following statements to answer this question: I. An increase in the firm's fixed costs will also shift the firm's short-run supply curve to the left. II
An increase in the firm's fixed costs will not shift the firm's short-run supply curve to the right or left, but it may alter how much of the marginal cost curve is used to form the short-run supply curve. A) I and II are true. B) I is true and II is false. C) II is true and I is false. D) I and II are false.