The spending multiplier effect is the result of a shift in the aggregate expenditures (AE) line
a. True
b. False
Indicate whether the statement is true or false
True
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Seasonal adjustment
A) should never be used. B) is rarely used. C) is a common characteristic of macroeconomic time series in wide use. D) is not used by modern macroeconomists.
What would a central bank need to do to reverse the effects of a favorable supply shock on inflation? What would its reaction do to the unemployment rate in the short run?
Both the marginal cost and the average variable cost curves are U-shaped. At the minimum point on the average variable cost curve, the marginal cost must be:
A. greater than the average variable cost. B. less than the average variable cost. C. equal to the average variable cost. D. at its minimum.
The behavior expected in a competitive market includes
A. Little technological growth. B. Aggressive behavior among competitors to control prices. C. Very little entry and exit. D. Marginal cost pricing.