The largest component of aggregate spending is government spending.
Answer the following statement true (T) or false (F)
False
The largest component of aggregate spending is consumption of goods and services.
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Based on the graph showing the effects of an investment tax credit or a technological change, enacting an investment tax credit would ______.
a. increase the demand curve for loanable funds
b. decrease the demand curve for loanable funds
c. increase the supply curve for loanable funds
d. decrease the supply curve for loanable funds
Oligopoly is a type of industry in which firms are independent.
Answer the following statement true (T) or false (F)
Suppose that the United States and Italy both produce wine and shoes. In the United States, wine sells for $10 a bottle and shoes sell for $40 a pair. In Italy, wine sells for 15 euros a bottle and shoes sell for 20 euros a pair. If the current exchange rate is 0.8 euro to the dollar, then
A. the United States will import wine from Italy and Italy will import shoes from the United States. B. Italy will import both shoes and wine from the United States. C. the United States will import both shoes and wine from Italy. D. the United States will import shoes from Italy and Italy will import wine from the United States.
The $787-billion stimulus package enacted by the Federal government in 2009 to try to deal with the Great Recession was intended to:
A. Shift the aggregate expenditures schedule down B. Close an inflationary expenditures-gap C. Bring inflation down D. Push the aggregate expenditures schedule upward