The Bureau of Economic Analysis reported that business investment in the second quarter of 2012 was $1,483 billion, $97 billion less than in 2008. An increase in business investment ________.
Fill in the blank(s) with the appropriate word(s).
increases aggregate planned expenditure, which increases income and induces an increase in consumption expenditure
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If a shift in aggregate demand only affects real Gross Domestic Product (GDP), then the short-run aggregate supply (SRAS) curve must be
A) upward sloping. B) downward sloping. C) horizontal. D) vertical.
If the aggregate demand curve shifts to the left in the short run then the long-run equilibrium will be at a:
A. higher price level and higher level of output. B. higher price level and lower level of output. C. lower price level and same level of output. D. lower price level and lower level of output.
Saving time by driving faster is an example of a ________ of driving faster. Increasing the severity of injuries from a potential accident due to driving faster is a(n) ________ of driving faster.
A. nominal cost; real cost B. marginal cost; nominal cost C. marginal benefit; marginal cost D. normative benefit; opportunity cost
If firms have more capital, it is ________ for workers
A) harmful B) ineffective C) beneficial D) unimportant