In the income-expenditure model, if autonomous saving increases by $15 billion, _____
a. the aggregate expenditure line shifts upward by $15 billion
b. planned investment increases by $15 billion
c. the aggregate expenditure line shifts downward by $15 billion
d. planned investment decreases by $15 billion
e. the equilibrium level of real GDP demanded decreases by $15 billion
c
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When there are sustained increases in real GDP over time, we say that the economy is undergoing
A) a recession. B) economic growth. C) massive changes in productive capacity. D) economic stagnation.
Real GDP does not show the state of economic welfare in a country in part because GDP omits
I. household production. II. leisure time available. III. the quality of the environment. A) I only B) I and III C) II and III D) I, II and III
Which of the following would increase gross private domestic investment in an economy?
A) an increase in the level of Apple's inventory B) an increase in the shares of Apple stock households own C) an increase in the number of workers Apple hires D) an increase in the number of highway construction projects the government is funding
A lender of the last resort refers to
A) a role of the central bank to prevent bank runs for temporary problems of liquidity. B) a role for the government to ensure that the central bank has adequate reserves. C) a reason for regulating banks. D) the need for market based regulations in the banking industry.