When aggregate demand shifts because of expansionary fiscal policy, then the impact of the fiscal policy for:
A. increasing GDP will be weakened if crowding out occurs.
B. decreasing GDP will be strengthened if crowding out occurs.
C. increasing GDP will be weakened by an increase in the price level.
D. increasing GDP will be strengthened by the decrease in the price level.
Answer: A
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Current income minus spending on current needs equals:
A. transfers. B. wealth. C. saving. D. investment.
In the model of the money supply process for M2, the relationship between checkable deposits and the M2 money supply is represented by
A) D = × M2. B) D = (1 + c + t + mm) × M2. C) M2 = × D. D) M2 = .
The classical economists believed that
a. labor supply is upward sloping because the income effect is greater than the substitution effect. b. labor supply is upward sloping because the substitution effect is greater than the income effect. c. labor supply is downward sloping because the income effect is greater than the substitution effect. d. in equilibrium, the marginal product of labor must exceed the real wage. e. both b and d.
Blu-ray players and Blu-ray discs are:
A. complementary goods. B. substitute goods. C. independent goods. D. inferior goods.