When the economy is at its equilibrium GDP level, all of the following will occur, except:
A. Aggregate expenditures = GDP
B. Inventories will be zero
C. Saving equals planned investment
D. There are no unplanned changes in inventories
B. Inventories will be zero
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Implicit costs refer to
a. out-of-pocket expenses b. all readily identified expenditures c. incremental costs of policy d. none of the above
Beth can earn $7,500 by renting out her house. However, her neighbor keeps a pet dog that chases away whoever comes looking for the house. Because her neighbor has a right to keep his pet untied, Beth is unable to find a tenant
What is the efficient outcome in this case if her neighbor values keeping his pet free for $1,500?
According to the graph shown, if the supply increases, then
A. consumer surplus would increase.
B. consumer surplus would decrease.
C. total surplus would increase.
D. quantity would increase.
The unintended consequences of the federal deregulation of the interest paid depositors in the savings and loans was
A. increasing the interest rates in the national money market. B. increasing the amount of the loss on existing loans. C. allowing management to make riskier loans. D. affecting the interest rates on existing long term loans.