Within the framework of the aggregate expenditures model, which of the following is true?
a. When spending on goods and services exceeds the level business decision makers anticipated, inventories will rise.
b. Equilibrium will always occur at the full-employment level of output.
c. A nation's imports will decline as the nation's disposable income increases.
d. When spending on goods and services exceeds the level of aggregate output, inventories will fall.
d
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The figure above shows the labor market in a region. If a minimum wage of $8 an hour is imposed, then there are ________ unemployed workers
A) 20,000 B) 40,000 C) 60,000 D) 80,000 E) zero
The economic way of thinking will help you
A) make decisions in financing your home. B) decide whether the U.S. government should encourage or discourage immigration. C) make better decisions concerning your education. D) all of the above
If there is an increase in foreign financial investment in the United States as the result of large U.S. budget deficits and attractive interest yields,
a. fiscal policy will be more expansionary since there will be no crowding-out effect. b. fiscal policy will be more expansionary since U.S. residents will increase their savings, so they can repay the foreigners in the future. c. foreign exchange value of the dollar will depreciate, which will lead to an increase in net exports and aggregate demand. d. foreign exchange value of the dollar will appreciate, which will lead to a decrease in net exports and aggregate demand.
When the price of TVs goes up and fewer TVs are purchased, this is representative of the
A) law of demand. B) law of supply. C) law of market operations. D) law of increasing costs.