If aggregate expenditures exceed GDP in a private closed economy:
A. leakages will exceed injections.
B. planned investment will exceed saving.
C. unplanned investment in inventories will occur.
D. saving will exceed planned investment.
B. planned investment will exceed saving.
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For most practical matters, economists assume that
A) individuals are risk neutral. B) individuals are risk lovers. C) individuals are risk averse. D) most individuals are risk lovers. E) most individuals are risk neutral.
If the quantity of loanable funds demanded exceeds the quantity of loanable funds supplied,
a. there is a surplus and the interest rate is above the equilibrium level. b. there is a surplus and the interest rate is below the equilibrium level. c. there is a shortage and the interest rate is above the equilibrium level. d. there is a shortage and the interest rate is below the equilibrium level.
Explain how the original Phillips curve differs from the expectations-augmented Phillips curve (or the modified, or accelerationist Phillips curve)
What will be an ideal response?
Suppose our tastes are homothetic. It is often observed that people become more rigid --- more set in their ways --- as they get older. Can you translate this observation into "economics-speak" by discussing which feature of our tastes is likely the be changing as we get older?
What will be an ideal response?