If firms increase investment, the aggregate expenditures function will shift upward, other things being equal
a. True
b. False
Indicate whether the statement is true or false
True
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If the average cost curve is downward sloping, then
a. marginal cost is smaller than average cost. b. the marginal cost curve is also downward sloping. c. there are increasing marginal returns to labor. d. wages and other input prices are falling.
Monetarists argue that the Fed should frequently adjust the money supply in response to ever-changing economic conditions
a. True b. False Indicate whether the statement is true or false
International feedback effects ________________ the impact on the unemployment rate of __________________ monetary policy
A) dampen; only expansionary B) dampen; expansionary and contractionary C) amplify; only contractionary D) amplify; contractionary and expansionary
Exhibit 5-4 Gross domestic product data National income accountBillions ofdollars Depreciation$ 800 Net interest1,500 Compensation of employees4,000 Profits1,000 Rental income 100 Indirect business taxes 600 Consumer purchases1,000 As shown in Exhibit 5-4, using the income approach, gross domestic product (GDP) is:
A. $9,000 billion. B. $6,600 billion. C. $7,400 billion. D. $8,000 billion.