When the economy is operating at the equilibrium level of GDP, we know that
A) total planned real consumption expenditures equal real GDP.
B) planned real investment spending equals real net exports of zero.
C) total planned real expenditures equal real GDP.
D) real net exports equal inventory changes.
C
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Answer the following statement(s) true (T) or false (F)
1. If the price of a good changes, the demand for the good changes. 2. When the quantity demanded by consumers goes up, we can be sure that there has been a rise in demand 3. A demand curve is drawn downward sloping to show that price and quantity demanded will move in opposite directions as long as other relevant factors remain unchanged. 4. An increase in the price of compact discs would shift the demand curve for DVD players to the left. 5. An increase in the price of gasoline would shift the demand curve for gasoline to the left.
The figure above shows Sam's budget line. Which of the following would result in Sam's budget line rotating outward and not changing its horizontal intercept?
A) a fall in the price of a pound of coffee B) a rise in the price of a pound of coffee C) a fall in the price of a gallon of gasoline D) a rise in the price of a gallon of gasoline
A chart of the ratio of national debt to GDP from 1915 to 2014 would show
a. significant increases from 1945 to 1975. b. significant increases during World Wars I and II. c. a larger value in 1975 compared to 1945. d. significant increases from 1995 to 2003.
A freeze in Florida's orange growing regions will:
A result in a sharp increase in the price of oranges in the short run because demand and supply are highly elastic. B result in a sharp increase in the price of oranges in the short run because demand and supply are highly inelastic. C result in little change in the price of oranges in the short run because supply is infinitely elastic. D result in a sharp decrease in the price of oranges in the short run because demand is highly inelastic and supply is highly elastic.