Within the framework of the aggregate expenditures model, which of the following is true?
A. When spending on goods and services exceeds the level business decision makers anticipated, inventories will rise.
B. Equilibrium will always occur at the full-employment level of output.
C. A nation's imports will decline as the nation's disposable income increases.
D. When spending on goods and services exceeds the level of aggregate output, inventories will fall.
Answer: D
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Which of the following is NOT an important factor affecting growth in labor productivity?
A) the saving rate B) the speed with which prices fall C) the growth rate of physical capital D) the growth rate of labor productivity
An increase in the money supply might indicate that the Fed had
a. purchased bonds to increase banks reserves. b. purchased bonds to decrease banks reserves. c. sold bonds to increase banks reserves. d. sold bonds to decrease banks reserves.
Which one of the following is a familiar type of asset-backed security?
a. U.S. Treasury bonds b. movie box-office receipts c. shares of stock in corporations d. securities backed by home mortgages e. none of the above
What are the effects of an increase in the minimum wage? Who would be most affected?
What will be an ideal response?