Starting from long-run equilibrium, a large increase in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; potential
B. recessionary; higher; potential
C. recessionary; lower; lower
D. expansionary; higher; higher
Answer: A
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In a closed economy, aggregate demand is the sum of
A) consumer expenditure, actual investment spending, and government spending. B) consumer expenditure, planned investment spending, and government spending. C) consumer expenditure, actual investment spending, government spending, and net exports. D) consumer expenditure, planned investment spending, government spending, and net exports.
The four factor payments are: # randomize
a. Money, capital, salaries, and income b. Wages, rent, interest and profits c. Money, power, prices and wealth d. Wages, interest, salaries and income
For a fixed inflation rate target, a decrease in the inflation rate corresponds to a ________ the aggregate demand curve and a decrease in exogenous spending corresponds to a ________ the aggregate demand curve.
A. movement down; shift left of B. shift left of; shift right of C. shift left of; movement up D. movement up; shift right of
The name "401(k)" for some retirement plans is a reference to
A. a room number inside the Social Security Administration headquarters. B. the section of the tax code that defines such plans. C. a specific cell in the spreadsheet that a government official used to create these retirement plans. D. the trademarked name of the first defined contribution retirement plan.