Refer to the accompanying figure.
Based on the Keynesian cross diagram, if output equals 5,000, planned aggregate expenditure is ________ output, and firms will ________ production in response.
A. less than; decrease
B. equal to; not change
C. less than; increase
D. greater than; decrease
Answer: A
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Married couples with only one working spouse paying Social Security taxes will ______
a. receive less in benefits than a single individual with the same lifetime payments b. receive the same in benefits as a single individual with the same lifetime payments c. receive more in benefits than a single individual with the same lifetime payments d. receive more in cash benefits but less in health care benefits than a single individual with the same lifetime payments
If we compare income mobility in absolute terms, we would measure whether a person's income:
A. is higher than her parents' income. B. places her higher up in the income distribution than her parents' income. C. is higher at the end of her career compared to the beginning. D. places her higher up in the income distribution over the course of her work-life.
Which of the following is not an interest-earning asset of commercial banks?
a. Required reserves. b. Checkable deposits. c. Customer savings accounts. d. All of the above are interest-earning assets of commercial banks. e. None of the above are interest-earning assets of commercial banks.
_____ is the price paid by the insured to sell the risk to the insurer, which must cover the expected payout if a disaster occurs
a. Insurance interest b. Insurance coverage c. Insurance bonus d. Insurance premium