What are the four subcategories of investment expenditures?
What will be an ideal response?
fixed investment, inventory investment, residential fixed investment, and spending on intellectual property
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Based on the figure below. Starting from long-run equilibrium at point C, a decrease in government spending that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at__ creating _____gap.
A. B; no output B. D; an expansionary C. B; recessionary D. D; a recessionary
If the required reserve ratio (RR) is 20 percent, the simple deposit multiplier is
A) 2. B) 5. C) 10. D) 20.
Give a brief overview of how education attainment and elementary and secondary education spending has changed in the United States since 1940
What will be an ideal response?
How does a profit-maximizing firm that is operating in a competitive labor market respond to an increase in the wage rate?
A. The firm will demand more labor due to the substitution effect. B. The firm will produce less output due to the scale effect. C. The firm will demand less capital due to the substitution effect. D. The firm will demand more capital due to the scale effect. E. The firm will demand more labor due to the scale effect.