What major historical event led to the most significant challenge to classical economic thinking?
a. The war on poverty
b. The American Revolution
c. World War II
d. The Great Depression
e. The oil shocks of the 1970s
D
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Which of the following illustrates how the investment accelerator works?
a. An increase in government expenditures increases the interest rate so that the Burgerville chain of restaurants decides to build fewer new restaurants. b. An increase in government expenditures increases aggregate spending so that Burgerville finds it profitable to build more new restaurants. c. An increase in government expenditures increases the interest rate so that the demand for stocks and bonds issued by Burgerville increases. d. An increase in government expenditures decreases the interest rate so that Burgerville decides to build more new restaurants.
Scarcity implies that
A. the satisfaction of one person's want means another person's want cannot be satisfied. B. the satisfaction of one person's want means another person's want can also be satisfied. C. the satisfaction of one person's want means another person will be more than satisfied. D. no person's wants can be satisfied.
Firms in a monopolistically competitive industry are distinguished by strategic behavior.
Answer the following statement true (T) or false (F)
Refer to Figure 13.1. All else equal, if the economy is in a recession, expansionary fiscal policy would result in a movement from
A) point A to point B. B) point B to point A. C) point B to point C. D) point C to point B.