Which of the following is correct?
a. Over the business cycle investment fluctuates more than consumption.
b. Economic fluctuations are easy to predict.
c. During recessions employment rises.
d. Because of government policy the U.S. had zero recessions in the last 25 years.
a
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As the general price level in the country of Norweinshire rose, the average interest rate in the economy increased, thereby lowering aggregate expenditure. This relationship between price level, interest rate, and aggregate expenditure is referred to as the:
a. total price effect. b. interest rate effect. c. wealth effect. d. real-balance effect. e. income effect.
Resources are used more efficiently if people, regions, and countries specialize in goods for which they have a(n): a. disincentive to trade with others
b. higher opportunity cost. c. absolute advantage in production. d. comparative advantage in production.
M1 money includes all the following except
a. traveler's checks b. demand deposits c. savings accounts d. paper money e. coins
Discretionary expenditures account for approximately
A. One-half of the federal budget. B. One-fifth of the federal budget. C. Three-fourths of the federal budget. D. One-third of the federal budget.