How does taking factors of investment, government spending, and net exports into account change the level of aggregate expenditure?
a. It increases the level of aggregate expenditure.
b. It decreases the level of aggregate expenditure.
c. It has no effect on the level of aggregate expenditure.
d. It depends on the level of consumption.
a. It increases the level of aggregate expenditure.
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In 2014, the price of peanuts was rising, which lead peanut butter sellers and peanut butter buyers to expect the price of peanut butter would rise in the future. Suppose the effect on the sellers was larger than the effect on the buyers
Consequently, in the current market for peanut butter there is a ________ in the price of peanut butter and ________ in the quantity of peanut butter. A) rise; an increase B) rise; a decrease C) fall; a decrease D) fall; an increase
If we were to compare the monopolistically competitive firm's long-run outcome to that of a perfectly competitive one, we would conclude that the monopolistically competitive firm:
A. creates less consumer surplus. B. produces more output. C. earns the same profit as a perfectly competitive firm. D. All of these statements are true.
If the World Bank lends $10 million to the government of Fiji to develop new sugar cane fields, that would be seen on Fiji’s international balance of payments as a
a. unilateral transfer. b. settlement account entry. c. financial account entry. d. service transaction in the current account.
used in response to recession
What will be an ideal response?