For a given price level, the aggregate expenditure line relates unplanned spending to the level of government investment in the economy
Indicate whether the statement is true or false
false
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Which of the following would be the best example of consumer surplus?
a. Shaniqua does not get cell-phone service because she feels that it is worth less than the $30 a month fee. b. Nicolas pays $8 for a haircut that is worth $10 to him. c. Diego buys a house for $104,000 . the maximum amount that he would be willing to pay for it. d. Isabella purchases a book for $20 and uses a credit card to pay for it.
In the above graph, tax revenues vary:
A. inversely with the level of GDP. B. directly with the level of government spending. C. directly with the level of GDP. D. inversely with the level of government spending.
People increase their labor supply in response to a temporary increase in government purchases because
A. higher spending today will lead to higher spending in the future, as well. B. interest rates will rise, causing a substitution effect. C. they need to work more to keep up with their neighbors. D. current or future taxes will increase, making them financially worse off.
As economists use the word, investment refers only to an increase in capital.
Answer the following statement true (T) or false (F)