Firms in a small economy planned that inventories would grow over the past year by $300,000. Over that year, inventories actually grew by $400,000. This implies that
What will be an ideal response?
aggregate expenditure that year was less than GDP that year
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The life-cycle hypothesis predicts what consequence of aging of the overall population? [That is, an increase in T, relative to R & L.]
A) a decrease in the marginal propensity to consume out of wealth B) an increase in aggregate saving C) a decrease in the marginal propensity to consume out of income D) an increase in aggregate wealth
There was a silver lining during the Great Depression. Compared to other periods in U.S. history, this period was one of the most technologically advanced
Indicate whether the statement is true or false
Economists use a preference map to illustrate that
A) more is better than less. B) preferences are transitive. C) preferences are complete. D) All of the above.
In equilibrium which of the following happens if the U.S. imposes tariffs on power tools?
a. U.S. net exports rise b. the exchange rate falls c. U.S. production of power tools rises d. All of the above are correct.