In the aggregate expenditures model, if aggregate expenditures (AE) are greater than GDP, then:
A. inventory is accumulated.
B. inventory is unchanged.
C. employment decreases.
D. employment increases.
Answer: D
You might also like to view...
What is the yield on a discount basis for a U.S. Treasury bill that has a face value of $10,000, has a price of $9500, and will mature in 180 days?
A) 5.00% B) 5.25% C) 10.00% D) 10.67%
If the price elasticity of demand for a product is equal to 4, a 1 percent increase in price of the product will cause the quantity demanded to _____ by _____ percent
a. increase; 0.25 b. decrease; 0.25 c. increase; 4 d. decrease; 25 e. decrease; 4
Future generations will be hurt by a high national debt if incurring the debt
a. was done to pay Social Security recipients. b. resulted in heavy commitments to bail out business firms. c. increased formation of capital. d. slowed the formation of capital.
A comparative advantage in the production of oil is held by
A. Australia.
B. the United States.
C. both countries.
D. neither country.