If AVC=$5 and AFC=15, then AC=
a. $15
b. $5
c. $20
d. $10
c
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Refer to Figure 27-1. Suppose the economy is in a recession and expansionary fiscal policy is pursued. Using the static AD-AS model in the figure above, this would be depicted as a movement from
A) C to B. B) A to B. C) A to E. D) B to C. E) B to A.
Decisions to reduce the money supply are made by ________ and are an example of ________ policy.
A. the Federal Reserve; fiscal B. the President; monetary C. Congress; monetary D. the Federal Reserve; monetary
In a closed economy with no government, aggregate expenditure is
A) consumption plus investment. B) saving plus investment. C) consumption plus the MPC. D) MPC + MPS. E) none of the above.
In the figure above, if real GDP is $10 trillion, aggregate planned expenditure is
A) equal to $10 trillion and there are no unplanned inventory changes. B) less than $10 trillion and unplanned inventory changes are positive. C) equal to $10 trillion and unplanned inventory changes are negative. D) more than $10 trillion and unplanned inventory changes are negative. E) equal to $10 trillion and unplanned inventory changes are positive.