The output of a government is equal to government consumption plus government investment.
Answer the following statement true (T) or false (F)
True
Government salaries and benefits are examples of consumption, and buildings and roads are examples of investments.
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If demand is elastic, a rise in price will decrease total expenditure.
Answer the following statement true (T) or false (F)
In the new classical model, workers and firms try to keep their real wages and relative prices from falling when ________
A) income falls B) they expect inflation to rise C) they expect inflation to fall D) they expect aggregate demand to fall
Most economists who have studied it believe that the Great Depression was caused by:
A. the stock market crash. B. illegal immigration. C. poor economic policymaking. D. a sharp decline in average labor productivity.
Figure 10-4
Starting from long-run equilibrium at point F in , at which of the following points would short-run equilibrium occur following a drought in the Midwestern states?
a.
I
b.
F
c.
G
d.
H