The four components of planned aggregate expenditure are:
A. consumption, planned investment, government transfers, and net interest.
B. consumption, planned investment, government purchases, and net exports.
C. spending on durable goods, inventory investment, government debt, and net exports.
D. spending on domestic goods, domestic services, foreign goods, and foreign services.
Answer: B
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Suppose the growth rate of GDP in the United States is 4.2 percent. If 2.9 percent and 1.3 percent of GDP growth are due, respectively, to capital and labor growth, the amount resulting from technological progress is
A) 0 percent. B) 1.3 percent. C) 2.9 percent. D) 4.2 percent.
Are government activities of any concern to macroeconomists?
A) Yes, since government actions and policies can affect an economy's overall performance. B) Yes, since macroeconomics is defined as the study of the role that government plays in the economy. C) No, since the government cannot affect the functioning of the private economy. D) No, since macroeconomists study hypothetical economies that have no government involvement at all.
The government's budget constraint is best represented by which of the following equations?
A) Government purchases of goods and services + Transfer payments + Interest payments on existing debt = Tax revenue + Newly issued government bonds + Seigniorage B) Government purchases of goods and services + Transfer payments + Tax revenue = Interest payments on existing debt + Newly issued government bonds + Seigniorage C) Tax revenue - Transfer payments = Government purchases of goods and services + Interest payments on existing debt + Newly issued government bonds + Seigniorage D) Government purchases of goods and services + Newly issued government bonds + Interest payments on existing debt = Transfer payments + Tax revenue + Seigniorage
The principal demanders of U.S. dollars in the foreign exchange market are:
A. the Federal Reserve. B. foreigners wishing to purchase U.S. goods or assets. C. U.S. households or firms wishing to purchase U.S. goods or assets. D. U.S. households or firms wishing to purchase foreign goods or assets.