Which of the following are endogenous variables within the classical model?
a. output
b. technology
c. quantity of money
d. level of capital
e. a, b, and d
A
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Which group came out of World War I (1914–18) better off?
(a) Industrial and agricultural workers (b) Creditors (c) Individuals depending on investment (d) People living on fixed incomes
If no fiscal policy changes are implemented to fight inflation, suppose the aggregate demand curve will exceed the current aggregate demand curve by $900 billion at any level of prices. Assuming the marginal propensity to consume is 0.90, this increase in aggregate demand could be prevented by:
a. increasing government spending by $500 billion. b. increasing government spending by $140 billion. c. decreasing taxes by $40 billion. d. increasing taxes by $100 billion.
Recall the scenario from the text: The city of Logan Square needs $40 million for a network of streetlights. There are 20,000 residents in the Logan Square neighborhood, meaning the cost for each resident is $2,000 . Psychiatrist Denise Miller refuses to donate $2,000 towards the project. This is an example of the problems encountered with
a. consumer goods b. capital goods c. rival goods d. public goods e. private goods
Explain how the prices of goods and services used in the CPI differ from the prices reflected by GDP deflator