List four factors that could shift the consumption schedule.
What will be an ideal response?
Shifts in the consumption schedule could be caused by any of the non income determinants of consumption and saving. This includes changes in any of the following: wealth, expectations, real interest rates, and household borrowing.
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Advice on taxes, accounting or management information systems, and business strategies are commonly referred to as ________ services
A) accounting audit B) management advisory C) seller D) managing underwriter
Which of the following is not primarily a function of the federal government
a. national security b. higher education c. economic stability d. market competition e. all of the above are functions of the federal government
Government intervention that aims to promote technology-enhancing industries is called
a. assisted technology. b. intervention policy. c. industrial technology assistance. d. industrial policy.
Figure 14-5
In , AD1 and SRAS1 indicate an economy initially operating at full-employment output level, Y1. The long-run impact of the Fed unexpectedly shifting to a more restrictive monetary policy will be
a.
a decrease in aggregate demand to AD2 and a decrease in real output to Y2.
b.
a decrease in the full-employment level of output to Y2.
c.
a decrease in aggregate demand to AD2 and an increase in short-run aggregate supply to SRAS2, causing the price level to fall to P3 and real output to remain unchanged at Y1.
d.
no change; AD and SRAS will stay at AD1 and SRAS1.