During 2013, exports increase from $1.0 trillion to $1.5 trillion. If the slope of the aggregate planned expenditure (AE) curve is 0.75, real GDP increases by
A) $8.0 trillion. B) $2.0 trillion. C) $6.0 trillion. D) $1.0 trillion. E) $4.0 trillion.
B
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A principle that economists emphasize is that the ____ of decision makers are always limited.
A. ideas B. goals C. resources D. opportunities E. offices
Fill in the blank: According to your textbook, "Fiscal policy is simply ________."
A) budget policy B) monetary policy under a different name C) price policy D) wage policy E) stupid
The Laffer curve is
A. never referred to in modern day discussions of public finance. B. a curve that describes the relationship between tax rates and tax revenues. C. used to describe the relationship between consumption and hours worked. D. a curve that refers to the endowment of time.
According to the simple circular flow concept, whenever planned investment is greater than planned saving during a period of less than full employment, there is a tendency for
a. total output to remain stable. b. prices to rise. c. employment to increase. d. inventories to accumulate.