In the circular flow model, households:
A. sell products and resources.
B. sell products and buy resources.
C. buy products and resources.
D. buy products and sell resources.
Answer: D
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If you were a Keynesian economist, what policies would you likely suggest to respond to a recession?
a. moderate tax cuts and increases in government spending b. cuts in government spending and moderate tax increases c. tax refunds and deep cuts to social programs d. government investments in defense and anti-inflation measures
The gross domestic product of a nation measures:
a. the amount of goods and services exported by the nation. b. the amount of goods and services imported by the nation. c. total expenditures by the nation's government d. the size of the nation's economy.
The aggregate supply curve is:
A. downward-sloping. B. the sum total of the production of all the firms in the economy for every level of profit. C. the relationship between the overall price level and total production by firms. D. the sum total of the production of all the firms in the economy for every given demand level.
How does the aggregate expenditures analysis differ from the aggregate demand–aggregate supply analysis?
What will be an ideal response?