Under the aggregate expenditure model, which of the following is always equal to output?
a. aggregate demand
b. aggregate expenditure
c. income
d. investment
c. income
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If the good in the above figure is a normal good and income rises, then the new equilibrium quantity
A) is less than 300 units. B) is 300 units. C) is more than 300 units. D) could be less than, equal to, or more than 300 units.
Briefly compare the structural unemployment that arises from minimum-wage laws to the frictional unemployment that arises from the process of job search
Most economists would agree with which statement about fiscal policy?
A. It's useful when few resources are unemployed due to an aggregate demand shock. B. It's useful when a lot of resources are unemployed due to a real shock. C. It's useful when few resources are unemployed due to a real shock. D. It's useful when a lot of resources are unemployed due to an aggregate demand shock.
The _____________ problem refers to the need to make choices because economic wants exceed economic means.
Fill in the blank(s) with the appropriate word(s).