The total of all planned expenditures in the entire economy is the definition of
A) production possibilities curve. B) aggregate demand.
C) net domestic product. D) aggregate supply.
B
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The marginal propensity to consume (MPC) is the fraction of additional income that is spent
Indicate whether the statement is true or false
In the short run, an increase in aggregate demand
A) lowers the price level and decreases real GDP. B) lowers the price level and increases real GDP. C) raises the price level and increases real GDP. D) raises the price level and decreases real GDP.
The public interest theory of industrial regulation contends that:
A. while industrial regulation is sound in theory, bureaucrats allow monopolists to obtain excessive profits. B. regulated monopolies are tantamount to legal cartels. C. the objective of regulation is to protect the public from the market power inherent in natural monopolies. D. firms in some industries want to be regulated.
Which of the following statements is most correct?
A. We cannot compute either the ex post or ex ante real interest rates accurately. B. We can accurately compute the ex ante real interest rate but not the ex post real rate. C. We can always compute the ex post real interest rate but not the ex ante real rate. D. None of the statements are correct.