An increase in the price of milk causes a decrease in the demand for cereal. The two products are
a. demand sensitive
b. substitutes
c. demand inelastic
d. complements
Ans: d. complements
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Which of the following is not a component of aggregate expenditure?
a. Consumption expenditures b. Investment c. Imports d. Rent e. Government purchases
Which of the following are policies that can affect cyclical unemployment?
a. adjust interest rates b. provide welfare assistance c. regulate hiring practices d. provide unemployment compensation
Autonomous spending rises by $10 billion and Real GDP rises by $50 billion. What does the marginal propensity to save equal?
A) 0.10 B) 0.20 C) 0.80 D) 0.90 E) 0.50
According to 2014 data on the U.S. population, which of the following groups of adults of prime working age (ages 25-54) had the lowest unemployment rate?
a. white males b. white females c. black males d. black females