The bursting of the housing bubble in 2006 caused ________ to cut back on their spending, thereby shifting the PAE line ________.
A. government and businesses; upward
B. government and businesses; downward
C. businesses and households; downward
D. businesses and households; upward
Answer: C
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Which term refers to the share of an activity's marginal cost that is paid for by the persons who carry out the activity?
a. Beneficial cost b. Incidental cost c. Marginal private cost d. Marginal social cost
Kroger's grocery chain wants to finance the purchase of a new warehouse. It decides to sell bonds
a. Kroger's plans to use equity financing and its action is part of the demand for loanable funds. b. Kroger's plans to use equity financing and its action is part of the supply of loanable funds. c. Kroger's plans to use debt financing and its action is part of the demand for loanable funds. d. Kroger's plans to use debt financing and its action is part of the supply of loanable funds.
Deviations of the actual unemployment rate from the natural rate of unemployment are called
A. seasonal unemployment. B. frictional unemployment. C. underemployment. D. cyclical unemployment.
A diagram shows the quantity of tomatoes on the horizontal axis and the quantity of coffee on the vertical axis. The quantity of tomatoes remains constant as the quantity of coffee increases. The graph of these data is
A) a horizontal line. B) a vertical line. C) a positively sloped line. D) a negatively sloped line