Which of the following would be classified as a personal consumption expenditure?
a. All of the following.
b. Your purchase of a newly constructed house
c. Your purchase of a preowned house.
d. Your purchase of one share of Microsoft stock.
e. Your purchase of this economics course.
e
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When there is an expansionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; expand B. increase; raise; decline C. decline; lower; decline D. decline; raise; decline
Points to the right of the IS schedule indicate that
a. investment plus government spending will exceed saving plus taxes. b. the amount of money supplied exceeds the amount of money demanded. c. saving plus taxes will exceed investment plus government spending. d. the amount of money demanded exceeds the amount of money supplied.
Social equality implies the absence of class stratification
Indicate whether the statement is true or false
Beef is a normal good. You observe that both the equilibrium price and quantity of beef have fallen over time. Which of the following explanations would be most consistent with this observation?
a. Consumers have experienced an increase in income, and beef-production technology has improved. b. The price of chicken has risen, and the price of steak sauce has fallen. c. New medical evidence has been released that indicates a negative correlation between a person's beef consumption and life expectancy. d. The demand curve for beef must be positively sloped.