What is the most powerful influence determining the level of national income equilibrium? Unlike Alfred Marshall who used the scissors metaphor to show that both supply and demand are equally involved in determining equilibrium price, Keynes argued that
a. aggregate expenditure is the most powerful influence on national income determination
b. aggregate supply is the most powerful influence on national income determination
c. aggregate saving is the most powerful influence on national income determination
d. government expenditure is the most powerful influence on national income determination
e. consumption is the most powerful influence on national income determination
A
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An example of a money flow in the circular flow diagram is
A) a student's payment of tuition to her university. B) the government's operation of the court system. C) the government's financing of the national debt. D) a firm's production of goods to sell to a foreign country. E) a farmer's use of land to grow wheat.
The AIC is a statistic
A) that is used as an alternative to the BIC when the sample size is small (T < 50) B) often used to test for heteroskedasticity C) used to help a researcher chose the number of lags in a time series with multiple predictors D) all of the above
According to the above figure, the profit-maximizing output for this monopolist is found directly below the letter
A) R. B) M. C) P. D) N.
If the price elasticity of demand for a good is 0.2, then a 3 percent decrease in price results in a
a. 0.6 percent increase in the quantity demanded. b. 1.5 percent increase in the quantity demanded. c. 2 percent increase in the quantity demanded. d. 6 percent increase in the quantity demanded.