If the central bank increases the money supply at the same time as government spending increases, then:
a. interest rates must increase.
b. interest rates must decrease.
c. income must increase.
d. income must decrease.
C
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Real Gross Domestic Product is
A) the amount of people unemployed divided by the total labor force. B) the productivity of labor. C) the most that can be produced when the economy's resources are fully employed. D) the value of total production linked back to the prices of a single year.
When stock prices fall significantly, people may feel less wealthy and thus decide to consume less of their current flow of disposable income. In our consumption function, this can be represented by a
A) fall in (Y - T). B) rise in T. C) rise in c. D) fall in a.
Price elasticity of demand is measured by the percentage change in
a. income divide by the percentage change in price b. quantity demanded divided by the percentage change in income c. price divided by the percentage change in quantity demanded d. quantity demanded divided by the percentage change in price e. total revenue divided by percentage change in price
The labor force includes:
a. employed workers but excludes persons who are officially unemployed. b. employed workers and persons who are officially unemployed. c. full-time workers but excludes part-time workers. d. permanent employees but excludes temporary employees.