Net exports ________ the autonomous expenditure multiplier
A) reduce
B) increase
C) A or B
D) have no effect on
A
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If aggregate expenditures exceed real GDP, then:
a. employment falls. b. the economy will have deflation. c. firms are depleting their inventories. d. the money supply will increase.
When a person possesses a comparative advantage in the production of one good or service, it: a. means that the person's opportunity cost of producing that good or service is higher than for that of other goods. b. discourages specialization
c. promotes greater self-sufficiency. d. permits gains from trade to be realized due to a more efficient use of resources.
Which of the following would increase household saving and thus equilibrium investment spending?
a. A reduction in the investment tax credit. b. An increase in the corporate profits tax. c. A decrease in the capital gains tax. d. An increase in the investment tax credit. e. An increase in government regulation.
The best example of a "frictionally unemployed" worker is one who:
A. Reduces productivity by causing friction in a business B. Is laid off during a recessionary period in the economy C. Is in the process of voluntarily switching jobs D. Is discouraged and not actively seeking work