Which of the following is a limitation of the aggregate expenditure model?
a. It always assumes changes in price level create changes in autonomous consumption.
b. It always assumes the economy is at equilibrium.
c. It does not allow for changes in aggregate demand.
d. It does not allow for the economy to self-correct.
d. It does not allow for the economy to self-correct.
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Which of the following is part of the cost of income transfers?
A) Tax-collecting agencies cost money to administer. B) Taxing incomes encourages people to work harder. C) Income transfers make the results more unfair. D) Income transfers increase the size of the economic pie. E) Income transfers are a similar to allocating resources using a lottery.
A situation in which the quantity of bonds supplied exceeds the quantity of bonds demanded is called a condition of excess supply; because people want to sell ________ bonds than others want to buy, the price of bonds will ________
A) fewer; fall B) fewer; rise C) more; fall D) more; rise
A person is seen placing a wager on the Super Bowl. It can be concluded that
a. the person is risk-preferring. b. the person is either risk-averse or risk-neutral, but not risk-preferring. c. the person is either risk-neutral or risk-preferring, but not risk-averse. d. we need more information before making a conclusion regarding this person's attitudes towards risk.
The Supreme Court's decision in the Standard Oil of New Jersey case was
A) to force the company to send refund checks to customers.
B) to force the company to pay $10 billion in fines.
C) to increase the fine imposed by a lower court.
D) to break up the company.