An increase in government spending leads to a(n)
a. downward shift of the aggregate expenditure line and a leftward shift of the money demand curve
b. upward shift of the aggregate expenditure line and a rightward shift of the money demand curve
c. downward shift of the aggregate expenditure line and a rightward shift of the money demand curve
d. upward shift of the aggregate expenditure line and a leftward shift of the money demand curve
e. upward shift of the aggregate expenditure line but no shift of the money demand curve
B
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In 2008, consumers were mailed a stimulus check in response to the recession. The result showed that Ricardian equivalence:
A. held, as most people spent a substantial share of the money. B. failed to hold, as most people spent a substantial share of the money. C. held, as most people saved the money. D. failed to hold, as most people saved the money.
As firms leave a monopolistically competitive industry that is sustaining economic losses:
A. the demand curves facing the remaining firms in the industry shift to the left. B. total quantity demanded increases for the industry. C. the demand curves facing the remaining firms in the industry shift to the right. D. the market supply curve shifts to the right.
If planned aggregate expenditure is less than total production
What will be an ideal response?
Free trade can be expected to cause a decrease in the real incomes of the owners of the factor used intensively in the import-competing industry.
Answer the following statement true (T) or false (F)