If an economy's GDP rises, then it must be the case that the economy's
a. income rises and saving falls.
b. income and saving both rise.
c. income rises and expenditure falls.
d. income and expenditure both rise.
d
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What economist in the early 20th century refined the use of the equation of exchange?
A) Jean-Baptiste Say B) Irving Fisher C) Thomas Malthus D) Adam Smith
The crucial incentive to produce new ideas comes from
A) patents and copyrights. B) international trade. C) rising population growth. D) shortages of physical and human capital. E) government economic guidance.
Under fiscal stabilization policy in the New Keynesian model, after a positive shock to output,
A) the government increases expenditures and the central bank increases the money supply. B) the government increases expenditures and the central bank decreases the money supply. C) the government decreases expenditures and the central bank increases the money supply. D) the government decreases expenditures and the central bank decreases the money supply.
Studies of wages by labor economists indicate that measurable variables such as age, job characteristics, years of education, and years of experience account for
a. virtually none of the variation in wages in our economy. b. some, but less than 50 percent of the variation in wages in our economy. c. about 75 percent of the variation in wages in our economy. d. almost all of the variation in wages in our economy.