Say's law says that
A. consumption is greater than supply.
B. people produce the goods they consume.
C. desired expenditures always equal actual expenditures.
D. people consume the goods they produce.
Answer: C
You might also like to view...
The U.S. economy is the largest in the world. What two factors primarily explain this? What makes the U.S. economy unique?
What will be an ideal response?
Government stabilization policy
A. cannot influence investment spending. B. can stimulate aggregate demand and thereby induce businesses to invest, but the amount is not totally predictable. C. can stimulate aggregate demand, but investment spending will not be affected. D. can stimulate aggregate demand, but only in the long run.
Which of the following is not an example of inflation causing a redistribution of income because the inflation was unexpected?
A) Firms have to hire extra workers to change prices because of inflation. B) A firm signs a 4-year contract with a union based on a 3% expected rate of inflation per year, and the actual inflation rate ends up being 5% per year. C) An employee receives an increase in salary that is less than the rate of inflation because management under-predicted inflation. D) A bank collects a lower amount of interest from a loan because inflation was predicted to be 2% but was actually 4%.
Individual supply curves generally slope ________ because ________.
A. downward; inputs are cheaper when purchased in high volume. B. upward; of increasing opportunity costs. C. downward; sellers become more efficient with practice. D. upward; profits increase with quantity.