Equilibrium expenditure is defined as the level of aggregate expenditure where
What will be an ideal response?
aggregate planned expenditure equals real GDP.
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The most likely explanation for the high inflation rates that countries like Russia and the Ukraine have suffered is that
A) large inflows of foreign funds increase the money supply, causing inflation. B) without inflation, these countries would be unable to achieve high rates of growth. C) borrowing from the central bank is the most expedient method of funding the government's expenditures. D) the flood of financial innovations has increased liquidity in these nations' economies.
If the price index moves from 105 to 115, the rate of inflation is:
a. 8.4% b. 9.5% c. 10% d. 8.7%
The rule of 70 applies to a growing savings account but not to a growing economy
a. True b. False Indicate whether the statement is true or false
The historical rise in living standards of American workers is primarily a result of
a. the influence of labor unions in America. b. tariff protection imposed by the American government. c. the enactment of minimum-wage laws in America. d. the rise in American productivity.