Consumption spending includes spending on:
A. stocks, bonds, and other financial instruments.
B. capital goods, residential housing, and changes in inventories.
C. goods and services by federal, state, and local governments.
D. durables, nondurables, and services.
Answer: D
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Figure 33-1
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Which of the following is true about the economy depicted in Figure 33-1?
A. Economy is experiencing supply-side inflation. B. Policymakers have chosen to fight inflation rather than unemployment. C. The increase in aggregate demand has increased prices but not real GDP. D. The slope of the aggregate supply curve embodies the trade-off between unemployment and inflation.
When households and firms sell financial assets, such as government securities, the
A) market price of the securities increases. B) nominal interest rate falls. C) supply of money curve shifts leftward. D) demand for money curve shifts leftward. E) nominal interest rate rises.
Trend-wise, the worldwide population is going as follows:
a. More rural b. More urban c. Larger family size d. Rapidly decreasing in places like Sao Paolo, Brazil
Among countries with per capita GDP in 2006 of less than $2,000,
A. central banks tend not to be independent. B. rates of basic literacy tend to be low. C. the government tends to be relatively corrupt. D. all of the options are correct.