Which of the following will cause consumption, and as a result, aggregate demand, to decrease?
a. a tax cut
b. a decrease in consumer confidence
c. increased population
d. an optimistic forecast of future income growth
b
You might also like to view...
In intra-industry trade, the level of worker productivity is determined by
a. how firms engage in specific learning about specialized products, including taking advantage of economies of scale. b. how firms take advantage of climate or geography. c. how firms take advantage of the general level of education or skill. d. how firms take advantage of technological advances.
Given the market rate of interest, the present value of $10,000 to be received after a period of 5 years
A. will be more than the present value of $10,000 to be received after a period of 4 years. B. will be less than the present value of $10,000 to be received after a period of 6 years. C. will be more than the present value of $10,000 to be received after a period of 6 years. D. will be the same as the present value of $10,000 to be received after a period of 6 years.
If the Fed sells $1 billion of short-term securities issued by the Bank of Japan and at the same time purchases $1 billion of short-term securities issued by the U.S. Treasury,
A) the monetary base will decline by $1 billion. B) the monetary base will rise by $1 billion. C) the Fed has conducted an unsterilized foreign-exchange intervention. D) the Fed has conducted a sterilized foreign-exchange intervention.
If w is the growth rate of the nominal wage rate, p is the inflation rate as measured by the price deflator for total GDP, y is the growth rate for total domestic product, and n is the growth rate of labor, then the growth of real wage is ________
A) wp/n B) y - p C) w - p D) wn/p