The degree to which _____ declines during a recession or increases during an expansion depends on the amount by which the AD and/or AS curves shift
a. real GDP
b. government tax revenue
c. the money supply
d. real interest rate
e. the consumer price index
a
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A production quota program:
A. imposes limits on the quantity that individual firms can produce. B. is a way to reduce prices without causing the overconsumption that occurs under a price support program. C. places limitations on the quantity that individual consumers can purchase. D. is like a subsidy in that it reduces the price that buyers pay for a good.
The greater the opportunity cost of any particular occupation, the smaller the number of people who will select that occupation
a. True b. False Indicate whether the statement is true or false
Which of the following is true of inflation?
a. It is an increase in the general price level of goods and services. b. The purchasing power of money increases as the result of inflation. c. Inflation is similar to interest payments on future money income, such as pensions and receipts from outstanding loans. d. Inflation has no effect on real resources.
In this graph, when disposable income is 4,000, consumption is
A. 4,000.
B. 3,250.
C. 2,500.
D. 1,000.