All of the following are components of aggregate expenditure except
A) government spending. B) net export spending.
C) actual investment spending. D) consumption spending.
C
You might also like to view...
If the demand and supply curves are described by the following equations P = a - bQ and P = c + dQ, respectively, the equilibrium quantity is Q* = (a - c) / (b + d)
Indicate whether the statement is true or false
Which of these is a lagging economic indicator?
a. The unemployment rate b. Personal income c. Industrial production d. Total employment e. Fluctuations in stock prices
A family friend is shopping for an exclusive Vera Wang wedding gown for $8,000 but feels that the price is excessive. She argues that the company should lower prices not only to benefit customers but also to increase the company's revenues and profits. What has she assumed about the price elasticity of demand for these gowns? Is her assumption likely to be correct or incorrect? Why?
If the demand for a good is very price elastic, the imposition of a tax on that good
a. places the largest portion of the burden on the sellers of that product b. places the burden of the tax equally on buyers and sellers c. places the largest portion of the tax on consumers d. will make demand more elastic than it was before the tax e. will make demand more inelastic than it was before the tax