Refer to the data. In equilibrium, the level of consumption spending will be:
(Advanced analysis) Answer the question on the basis of the following consumption and
investment data for a private closed economy. Figures are in billions of dollars.
C = 60 + .6Y
I = I 0 = 30
A. 170.
B. 270.
C. 160.
D. 195.
D. 195.
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Common property ownership without granting property rights to individuals will likely leads to
A. production at a rate at which price is less than social cost. B. more social justice. C. an efficient allocation of resources. D. an increase of externalities.
Refer to the data. We can infer that, at zero output, this firm's total fixed, total variable, and total costs are:
A. zero, zero, and zero, respectively.
B. zero, $25, and $175, respectively.
C. $150, $25, and $175, respectively.
D. $150, zero, and $150, respectively.
Which of the following does NOT shift the aggregate demand curve?
A) a change in the money wage B) a change in expectations about the future C) a change in fiscal policy D) a change in monetary policy E) a change in foreign income
Which of the following is true?
A) Employment and unemployment are both coincident with the business cycle. B) Employment and unemployment are both procyclical. C) Employment is procyclical and unemployment is coincident with the business cycle. D) Employment is procyclical and unemployment is countercyclical.