Government spending (G)
What will be an ideal response?
the component of GDP that represents spending on goods and services by federal, state and local government. on goods and services, including spending by federal, state, and local governments (G) is added to aggregate demand (AD). Taxes do not appear directly in this equation, but, as we will see, they have an impact through their effect on consumption spending.
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Explain how it is possible for marginal product to fall while average product is rising?
What will be an ideal response?
If the central bank follows a monetary policy in which it maintains a fixed interest rate, then
a. the LM curve will get steeper. b. the IS curve will get steeper. c. the LM curve will become vertical. d. the LM curve will become horizontal. e. none of the above.
Which of the following could explain a fall over time in the price of the depletable resource bauxite?
A. The productivity of bauxite mines fell. B. New deposits of bauxite were discovered. C. Demand for bauxite increased over time. D. The cost of extraction increased.
The price of services at Urban General falls by 10 percent.
a. Quantity demanded increases by 1.5 percent. b. Quantity demanded falls by 5.0 percent. c. Quantity demanded increases by 15.0 percent. d. Quantity demanded falls by 2.5 percent. e. Quantity demanded rises by 5.0 percent.