Refer to the information provided in Figure 30.1 below to answer the question(s) that follow.
Figure 30.1Refer to Figure 30.1. Growth in aggregate output causes a ________ through the accelerator effect.
A. shift from Point B to Point C
B. shift from Point C to Point B
C. shift from I2 to I3
D. shift from I3 to I2
Answer: D
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The use of purchasing power parity prices
A) decreases the real GDP per person statistics published by the International Monetary Fund. B) weakens the validity of cross country comparisons of economic welfare. C) increases the amount by which U.S. GDP is larger than that of any other nation. D) accounts for differences in the prices of the same goods in different countries when measuring real GDP.
To calculate the growth rate of a variable, you will
A) calculate the percentage change from one time period to the next. B) calculate the difference between the two variables. C) add the ending value to the beginning value. D) divide the increase by the number of time periods.
Higher interest rates as a result of deficit spending:
A. increase the wealth of future generations. B. crowd out private investment. C. ultimately has a positive impact on productivity gains and? society's standard of living. D. raise growth in investment spending.
In the actual economy, households
a. spend all of their income. b. divide their income among spending, taxes, and saving. c. buy all goods and services produced in the economy. d. Both (a) and (c) are correct.