Which of the following is illustrated by the distance between the aggregate expenditure line and the 45-degree line at each level of real GDP?
a. The level of saving in an economy
b. Unplanned inventory change
c. Planned investment undertaken in an economy
d. The marginal propensity to save
e. The marginal propensity to consume
b
You might also like to view...
From the price-setter's point of view, the appropriate cost of a good is
A) the inventory cost. B) the marginal cost. C) the sunk cost. D) the wholesale cost.
Since the replacement of AFDC with TANF the welfare rolls have grown in the United States
a. True b. False
Which of the following statements is correct regarding the imposition of a tax on gasoline? a. The incidence of the tax always falls on the buyer
b. The incidence of the tax depends upon the price elasticities of demand and supply. c. The incidence of the tax always falls on the sellers. d. The oil company will ultimately pay.
With free trade, the demand curve facing a small-country monopolist:
a. is horizontal at the world price. b. shifts upward by the amount of imports demanded. c. shifts downward by the amount of imports demanded. d. is horizontal at the firm's MC.