The components of aggregate expenditure are consumption expenditure,
A) investment, government expenditure on goods and services, and net exports.
B) investment, government expenditure on goods and services, and net taxes.
C) interest, government expenditure on goods and services, and net exports.
D) investment, government expenditure on goods and services, and net income.
E) interest, gross spending, and net spending.
A
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Monetary policy goals include
i. maximum employment. ii. stable prices. iii. moderate long-term interest rates. A) i only B) ii only C) i and iii only D) i and ii only E) i, ii, and iii
When tax revenue ________ outlays is positive, then the government has a budget ________
A) minus; surplus B) divided by; surplus C) minus; deficit D) plus; deficit E) plus; surplus
Franklin buys a bottle of his favorite brand of Scotch every Friday on his way home from work. A new tax means the price of the bottle has increased. Franklin could buy fewer bottles of Scotch, but he might also choose to:
a. calculate how many utils he gets per glass from a bottle. b. create a demand curve that demonstrates ceteris paribus. c. switch to drinking bourbon. d. cut back on a different expense so he can pay the higher price of the Scotch.
As a result of pure free trade in a commodity the
a. price of the commodity must be the same in all countries. b. total quantity imported will exceed the total quantity exported. c. price of the commodity will be higher in the producing country. d. price of the commodity will be lower in the producing country.