Personal consumption spending is the most sensitive component of aggregate demand to monetary policy
a. True
b. False
Indicate whether the statement is true or false
False
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If the percentage change in the quantity demanded of a good is less than the percentage change in price, price elasticity of demand is:
a. elastic. b. inelastic. c. perfectly inelastic. d. unitary elastic.
An increase in the amount of capital per worker always increases the value of output
a. True b. False Indicate whether the statement is true or false
Speculators in the financial market:
A. act as buyers only. B. act as sellers only. C. buy and sell assets for financial gain. D. reduces risk in financial markets.
Recall the Application about how society will cope with increased demands for entitlement programs to answer the following question(s). This Application addresses the impact of increasing life expectancy and aging populations on the costs of government entitlement programs such as Social Security, Medicare and Medicaid, and examines several possible solutions to the potential problem.According to this Application, one strategy proposed to deal with the rising expenses of government entitlement programs is for the government to save and invest now so as to reduce the burden on future generations. This strategy would:
A. increase GDP, and entitlement programs would increase along with GDP. B. increase GDP and entitlement programs would decrease. C. increase GDP and eliminate entitlement programs. D. not change GDP, but shrink entitlement programs.