The portion of aggregate expenditure that is independent of output is called ________ expenditure.
A. actual
B. potential
C. autonomous
D. planned
Answer: C
You might also like to view...
According to Say's Law, supply creates its own demand
a. True b. False
Abstract economic theory can be used by academicians but not by politicians or business people.
Answer the following statement true (T) or false (F)
Which of the following statements is true of comparative advantage?
a. A nation can have a comparative advantage in the production of a good only if it has an absolute advantage in its production. b. When a nation increases production in its area of comparative advantage and trades with another nation, both nations benefit. c. When a nation produces a good at a higher opportunity cost than its trading partner, it is said to have a comparative advantage. d. A nation imports the good in which it has a comparative advantage.
Which of the following contributes to the popularity of the argument that government spending expands employment?
A) The employment generated by the additional spending can be accomplished without increases in taxes or borrowing. B) The employment generated by the additional spending is highly visible, while the employment crowded out by taxing, spending, and borrowing is largely unseen. C) The employment generated by the additional spending is not easily seen, while the employment crowded out by taxing, spending, and borrowing is highly visible. D) Higher taxes will be popular if they finance spending that expands employment.