Consumption expenditures do not include household purchases of
A) medical care.
B) durable goods.
C) new houses.
D) education.
C
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If marginal cost is above the average variable cost, then average variable cost is decreasing
Indicate whether the statement is true or false
An example of an automatic stabilizer is
A) unemployment compensation. B) a newly enacted surtax to slow down an overheated economy. C) a horizontal aggregate supply curve. D) a change in the marginal tax rates.
Suppose there is a reduction in cash flow. This suggests that
A) firms have decreased their expectations of future profits. B) the real interest rate has increased. C) the rate of depreciation has increased. D) current profits have decreased. E) all of the above
If the United States' unemployment rate is 10 percent and the capacity utilization rate is 70 percent, the economy is in the midst of a ____________.
Fill in the blank(s) with the appropriate word(s).