If the economy is in a deep recession, a modest increase in aggregate demand is likely to cause _____ in prices and _______ in output level.
a) an increase; an increase
b) an increase; little or no change
c) a decrease; an increase
d) little or no change; an increase
e) little or no change; little or no increase
Answer: d) little or no change; an increase
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The factor market can best be described as where
A) households buy goods and services. B) firms buy goods and services. C) firms buy the services of labor, land and capital. D) governments sell goods and services.
According to Irving Fisher, velocity ________
A) is determined by institutions that affect the way individuals transact B) is affected by institutions only gradually C) is assumed constant in the short run D) all of the above E) none of the above
Ordinary Least Squares Regression analysis attempts to
A) maximize the distance of each point from a regression line. B) select a line that fits the data well. C) maximize the residual. D) change a multivariate problem into a single dimension.
A change in net taxes affects the equilibrium quantity of GDP demanded_____
a. in the same way as a change in government purchases does b. in the same way as a change in planned investment does c. in the same way as a change in net exports does d. only indirectly, changing the level of disposable income e. in an unpredictable manner