Which of the following is included in the expenditures approach to GDP?
A. Spending on meals by consumers at restaurants
B. Expenditures on used clothing at garage sales
C. Value of stocks and bonds bought by businessmen
D. Government spending on welfare payments
A. Spending on meals by consumers at restaurants
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Refer to the above figure. Suppose the economy is in long-run equilibrium at point A, and the government initiates an expansionary monetary policy to increase aggregate demand
Which of the following is a TRUE statement concerning the differences between what happens when the central bank action is unanticipated and when it is anticipated? A) The new long-run equilibrium will be point C in either case. When the increase in aggregate demand is unanticipated, the economy moves to B in the short run, but when the increase in aggregate demand is anticipated, short-run aggregate supply shifts when the aggregate demand curve shifts, and the economy moves immediately to point C. B) The new long-run equilibrium when the increase in aggregate demand is unanticipated is point B while the new long-run equilibrium when the increase in aggregate demand is anticipated is point C. C) The new long-run equilibrium is point C in either case. When the increase in aggregate demand is unanticipated, the new short-run equilibrium is point B, but when the increase in aggregate demand is anticipated the new short-run equilibrium is point D. D) The new long-run equilibrium when the increase in aggregate demand is unanticipated is point B while the new long-run equilibrium when the increase in aggregate demand is anticipated is point A.
The more inelastic the consumer demand for the final product, the
A) greater will be the economic profit in a competitive market. B) greater the impact on employment from a change in the wage rate. C) more inelastic the demand for labor producing the product. D) more responsive the output demand to a change in the price of labor.
A supply-side policy to cure inflation would include
A. A minimum wage increase. B. A reserve requirement decrease. C. Deregulation. D. Tax increases.
To answer the "HOW" to produce question, society should:
A. Use all the available labor. B. Maximize the quantity of all resources used. C. Find an optimal method of producing goods and services. D. Attempt to produce a combination of goods and services beyond the production possibilities.