When drawn against the real interest rate, the output demand curve unambiguously shifts to the right if
A) current capital decreases.
B) current total factor productivity decreases.
C) future total factor productivity decreases.
D) current or future taxes increase.
A
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Open market operations refer to the purchase or sale of ________ to control the money supply.
A) corporate bonds and stocks by the Federal Reserve B) U.S. Treasury securities by the Federal Reserve C) corporate bonds and stocks by the U.S. Treasury D) U.S. Treasury securities by the U.S. Treasury
Consider an initial IS-LM equilibrium with normally-sloped curves. An increase in government spending shifts the ________ by a horizontal distance equal to the change in government spending ________
A) IS curve to the right, divided by the Chapter 3 multiplier B) IS curve to the right, times the Chapter 3 multiplier C) IS curve to the left, times the interest rate at the initial equilibrium D) LM curve to the right, divided by the Chapter 3 multiplier E) LM curve to the right, divided by the interest rate at the initial equilibrium
In the value-added approach, GDP is the sum of revenue received by all firms in the economy
a. True b. False
Retained earnings is income that
a. households retain after paying taxes. b. businesses retain after paying taxes. c. corporations have earned but have not used to invest in plant, equipment, and inventories. d. corporations have earned but have not paid out to their owners.