One explanation given in the video for the fluctuations of an economy's real growth rate around its potential growth rate is:
A. that there are often shocks to the planned level of spending.
B. that there are often shocks to the money supply.
C. that the potential growth is inaccurately calculated.
D. that there are often shocks to the key growth factors
Ans: D. that there are often shocks to the key growth factors
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In the circular flow model, households earn their incomes in the:
A. Resource markets B. Product markets C. Capitalist markets D. Money markets
If some nonprice level determinant causes total spending to decrease, then the effect on aggregate demand will be a: a. movement upward along the curve
b. movement downward along the curve. c. shift to the left. d. shift to the right.
The index of leading indicators was developed to provide more reliable information on
a. the expected future direction of the economy. b. the future profitability of the leading companies in various industries. c. where the economy has been in the recent past. d. the extent to which the economy's existing plant and equipment capacity is being used.
Chris has a one-hour break between classes every Wednesday. Chris can either stay at the library and study or go to the gym and work out. The decision Chris must make is:
A. not an economic problem because it's an hour that Chris has no matter what he does. B. not an economic problem because neither activity costs money. C. an economic problem because the tuition Chris pays covers the cost of both the gym and the library. D. an economic problem because Chris has only one hour, and engaging in one activity means giving up the other.