In the aggregate expenditures model, if aggregate expenditures (AE) are less than GDP, then:
a. inventory is depleted.
b. inventory is accumulated.
c. inventory is unchanged.
d. employment increases.
b
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A restaurant charges its customers 12% of the total food price as tax. This is an example of a ________ tax
A) payroll B) wealth C) property D) sales
If there are big gains to be had from specialization and trade, countries generally don’t produce one good because:
A. national economies often are perfectly free markets. B. there is perfectly free trade between national economies. C. specialization is generally limited by trade agreements. D. All of these are true.
What is true of disposable income?
What will be an ideal response?
Suppose the consumption function is C = $100 + 0.85YD. If disposable income is $400, saving is
A. -$15.00. B. $15.00. C. $40.00. D. -$40.00.