The circular flow model of the economy shows
a. the flow of money, goods, and services between households and firms
b. why specific flows occur
c. the relationship between money and goods within households
d. the relationship between resources and the prices of resources
e. the flow of resources from households to firms
A
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Decreased investment spending in the economy would be a possible result of
A) an open market sale of bonds by the Fed. B) an increase in the money supply. C) an open market purchase of bonds by the Fed. D) a decrease in interest rates.
If everyone has identical preferences over public goods, Lindahl prices for providing the efficient level of the public good will be the same for everyone.
Answer the following statement true (T) or false (F)
Suppose that to move more people off the wait list for organ donations, surgeons and hospitals are developing a market for organ swapping. This is an example of a macroeconomics topic
Indicate whether the statement is true or false
Refer to Figure 23-1. At point J in the figure above, which of the following is true?
A) The economy has achieved macroeconomic equilibrium. B) Actual inventories are less than planned inventories. C) GDP will be decreasing. D) Aggregate expenditure is less than GDP.