Assuming that C + Ir + G < C + I + G, then
a. there is an unintended inventory accumulation.
b. there is an unintended inventory shortfall.
c. aggregate demand is less than output.
d. Both b and c
D
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An unemployed individual decides to spend the day fishing. The opportunity cost of fishing is
A) zero, because the person doesn't have a job. B) the cost of bait, any other monetary expenses, and the value of the individual's wages while he was working. C) the cost of bait and any other monetary expenses. D) the cost of bait, any other monetary expenses, and the value of the best alternative use of the individual's time.
The most likely explanation of the recession of 1981-1982 was
A) an increase in energy prices. B) a collapse in investment spending. C) that it was an unfortunate byproduct of a decrease in inflation. D) a dramatic decrease in stock prices.
"Common stock" is the type sold to small investors
a. True b. False Indicate whether the statement is true or false
The idea that if governments cut taxes but not spending, people will not change their behavior, and expansionary policy will have little expansionary effect is known as:
A. Keynesian policy. B. Ricardian equivalence. C. the invisible hand. D. Stimulus policy.