As a result of slow economic growth in 2011, many companies including Cisco Systems, Lockheed Martin, and Cracker Barrel Old Country Store cut production and employment as a result of the sluggish growth in the total amount of spending in the economy. The total amount of spending in the economy is known as
a. equilibrium spending.
b. deficit spending.
c. aggregate expenditure.
d. planned investment spending.
Answer: c. aggregate expenditure.
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Suppose the market price of zinc doubles. Which of the following scenarios is most likely?
A) The demand for zinc miners will increase, raising the market wage rate. B) The demand for zinc miners will decrease, reducing the market wage rate. C) The demand for zinc will increase, raising the market price further. D) The demand for zinc miners will decrease, reducing the market price back to its original price.
Figure 11-1
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In Figure 11-1, what can be concluded about the economy if production moves from Point D to Point A?
A. An improvement of calculator technology B. An increase in resources for producing other goods C. A reduction in the need for calculators in the economy D. A more equal distribution of resources in the economy
To maintain an interest rate target the Fed must make adjustments to the money supply
a. True b. False
If the price level increases by 5 percent and the nominal wage increases by 3.5 percent, the real wage will decrease by 1.5 percent.
a. true b. false