In a simple economy (no government), the vertical distance between the consumption function and the expenditure schedule measures
A. undesired inventory depletion.
B. planned investment
C. undesired investment.
D. unintended investment.
Answer: B
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In the above figure, the short-run macroeconomic equilibrium is at the price level ________ and the real GDP level ________
A) 110; $16.5 trillion B) 120; $16 trillion C) 100; $16 trillion D) 110; $16 trillion
Which of the following people would be considered unemployed by the Bureau of Labor Statistics?
I. Mrs. X retires from her job and does not look for another job. II. Mr. Y was laid off from his job as a welder, but expects to be rehired in 8 months. A) I only B) II only C) Both I and II D) Neither I nor II
The money wage rate has little effect on the supply curve. It mainly affects the aggregate demand curve
a. True b. False Indicate whether the statement is true or false
If there's a speculative bubble in an asset market, then once investors no longer expect future price growth, the price of the asset ________.
A. tends to fall quickly B. usually doesn't change C. falls, but only at a very slow rate D. tends to increase rapidly