Which of the following would not be included in aggregate demand?
a. an increase in firms' inventories.
b. purchases of goods by households.
c. firms' purchases of newly produced machinery.
d. government's tax collections.
d
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According to the method of growth accounting, which of the following contribute to economic growth?
A) technological progress B) capital growth C) labor growth D) all of the above
Before the financial crisis of 2007, inflation was on the rise. According to the MP curve, this would lead to ________
A) an increase in the real interest rate B) an upward shift of the MP curve, if policymakers opted for autonomous tightening C) a decrease in aggregate output D) all of the above E) none of the above
If the MPC = .75, the spending multiplier is:
a. 4. b. 5. c. 1.33. d. 1.20. e. .25.
Economic problems are made manageable by stripping away some of the unnecessary details
a. True b. False Indicate whether the statement is true or false