Refer to Figure 4.3. All else equal, an increase in net exports accompanied by a decrease in expected future profits would cause which of the following shifts?
A) S1 to S2 and D1 to D2
B) S2 to S1 and D1 to D2
C) S1 to S2 and D2 to D1
D) S2 to S1 and D2 to D1
D
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Which statement about the ownership of the Fed is true?
a. The Fed is publicly owned by the citizens of the United States. b. The Fed is owned by the Federal Reserve Board of Governors. c. The Fed is privately owned by member banks. d. The Fed is owned by the U.S. government.
If businesses expect the economic activity to expand
A. the planned investment function relating investment to the interest rate will shift to the left. B. the planned investment function relating investment to the interest rate will shift to the right. C. the planned investment function relating investment to the interest rate will steepen. D. the planned investment function relating investment to the interest rate will remain unchanged, but will move downward along the curve.
An increase in government purchases shifts the ________ curve to the ________.
A. aggregate supply; right B. aggregate demand; left C. aggregate demand; right D. aggregate supply; left
Real GDP is nominal GDP adjusted for:
A) double counting. B) changes in prices. C) population. D) imports.