Which of the following events shifts the aggregate-demand curve leftward?
a. A decrease in government expenditures, but not a change in the price level.
b. An increase in government expenditures or a decrease in the price level
c. A decrease in government expenditures or an increase in the price level.
d. An increase in the price level, but not a decrease in government expenditures.
a
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The fact that output gaps will not last indefinitely, but will be closed by rising or falling inflation is the economy's:
A. income-expenditure multiplier. B. self-correcting property. C. short-run equilibrium property. D. long-run equilibrium property.
A good or service is considered scarce if
a. any quantity of it can be consumed at a zero price b. the amount people desire exceeds the amount available at a zero price c. the amount people desire exceeds the amount available at any price d. the amount people desire is less than the amount available at any price e. the amount people desire is less than the amount available at a zero price
Refer to Figure 6.4. If the price of computers is $1,000, then expenditures on computers is represented by the area:
A. c + d
B. c
C. b + c
D. a + b + c
Full employment means which of the following is zero?
A. structural unemployment B. cyclical unemployment C. frictional unemployment D. aggregate unemployment