Aggregate demand grows because
A. patent laws protect and stimulate new inventions.
B. there is more machinery and technology improvement.
C. the government increases its spending, a growing population increases consumer spending, and the Fed increases the money supply.
D. All of these responses are correct.
Answer: C
You might also like to view...
If the inflation that results from targeting unemployment becomes unacceptably high, low inflation can be restored
Lower inflation can be obtained by ________ the growth rate of aggregate demand, by ________ money growth, and by________ interest rates. A) lowering; accelerating; raising B) raising; slowing; raising C) lowering; slowing; raising D) lowering; accelerating; lowering E) lowering; slowing; lowering
According to Alfred Chandler (1977), big business could be justified, at least in part, by
(a) a rapid rate of innovation among big firms. (b) periodic recessions in which alert big businessmen buy out bankrupt firms and expand operations. (c) a relatively low rate of bankruptcies among big firms. (d) its ability to take advantage of scale economies—big business could best take advantage of technology and economies resulting from large-scale production processes.
An asset is said to be illiquid when:
a. it lacks purchasing power. b. it cannot act as a store of value. c. it is an illegal tender. d. it cannot be readily exchanged for goods. e. it cannot be used to settle debts.
When a prisoners' dilemma game is repeated a finite number of times (T)
A) cooperation unravels during the first round of the game, resulting in the static game Nash equilibrium. B) cooperation continues until the T-2 round, where the players will switch to a non-cooperative Nash equilibrium. C) firms cooperate and achieve the collusive Nash equilibrium for all rounds. D) None of the above.