Refer to Figure 13.1. All else equal, a decrease in government purchases would best be represented by a movement from
A) point A to point B.
B) point B to point A.
C) point B to point C.
D) point C to point B.
A
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How do the characteristics of perfect competition and monopolistic competition differ?
What will be an ideal response?
When the yield curve is downward-sloping,
A) short-term yields are higher than long-term yields. B) long-term yields are higher than short-term yields. C) the bond market is anticipating the U.S. Treasury may default on its obligations. D) the inflation rate is expected to rise.
Answer the question on the basis of the following data. All figures are in billions of dollars. Gross Investment 18 National Income 100 Net Exports 2 Personal income 85 Personal Consumption Expenditures 70 Saving 5 Government Purchases 20 Net Domestic Product 105 Statistical Discrepancy 0 Refer to the above data. Consumption of fixed capital is:
a) $5. b) $10. c) $20. d)$30.
The economy is experiencing a recession combined with inflation. The self-correction school would say the proper response is to_____.
A. increase government spending B. increase regulations on new research projects C. do nothing D. increase the money supply