What are the four categories of aggregate expenditure?
What will be an ideal response?
The four categories are consumption spending, planned investment spending, government purchases, and net exports.
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Explain what is meant by the phrase "a bank's balancing act."
What will be an ideal response?
If the U.S. economy is experiencing falling price levels, the
A. expenditure schedule will shift downward. B. expenditure schedule will shift upward. C. slope of the expenditure schedule increases. D. slope of the expenditure schedule decreases.
In a perfectly competitive market ________
A) the goods purchased are assumed to be standardized products B) prices adjust quickly to equilibrium C) buyers and sellers are price takers D) all of the above E) none of the above
The Fed raised interest rates in 2004 and 2005 . This implies, other things the same, that the Fed
a. increased the money supply because it was concerned about unemployment. b. increased the money supply because it was concerned about inflation. c. decreased the money supply because it was concerned about unemployment. d. decreased the money supply because it was concerned about inflation.