The aggregate expenditure line shows total planned spending at each
What will be an ideal response?
income level, holding the price level constant
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An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase B. increase; increase C. decrease; decrease D. increase; decrease
The table above gives production information for Bob's Baseball Cap Company. Bob's total cost when zero caps are produced is $200 and workers cost $10 per hour. The marginal cost per hat of producing 30 hats per hour (instead of 25 ) is
A) $240.00 per hat. B) $250.00 per hat. C) $8.33 per hat. D) $2.00 per hat.
Assume that you have used the OLS estimator in the cointegrating regression and test the residual for a unit root using an ADF test. The resulting ADF test statistic has a
A) normal distribution in large samples. B) non-normal distribution which requires ADF critical values for inference. C) non-normal distribution which requires EG-ADF critical values for inference. D) normal distribution when HAC standard errors are used.
If the price level in the United States falls relative to the price level in foreign nations, U.S. exports:
A. increase and U.S. imports decrease, causing the demand for dollars to fall and the supply of dollars to rise. B. decrease and U.S. imports decrease, causing the demand for dollars to rise and the supply of dollars to rise. C. decrease and U.S. imports increase, causing the demand for dollars to fall and the supply of dollars to rise. D. increase and U.S. imports decrease, causing the demand for dollars to rise and the supply of dollars to fall.