Which of the following is TRUE regarding the circular flow diagram?
I. "Aggregate income" is the flow of income earned by firms.
II. Retained earnings are considered income earned by firms rather than part of households' income.
III. The government, households, and firms all have transactions in the goods market.
A) I only
B) I and II
C) I and III
D) III only
D
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What factors will shift the aggregate expenditure function for a given level of real domestic income?
What will be an ideal response?
In 2013, the U.S. spending on research and development was:
a. the lowest among developed countries b. more than any other country c. more than most countries, but not China d. consistent with spending on R&D in 2012
A proposition about the relationship between two variables that can be proven false is called:
A) a hypothesis. B) a law. C) a theory. D) the scientific method.
If V is constant and Y is fixed, any change in M
A. leads to a smaller change in P. B. leads to a larger change in P. C. does not lead to change in P. D. leads to a proportionate change in P.