Use the following graph to answer the next question.
In the diagram, Qf is the full-employment output. If the economy's current aggregate demand curve is AD0, it would be appropriate for the government to
A. reduce unemployment compensation benefits.
B. reduce government purchases or increase taxes.
C. increase government purchases or reduce taxes.
D. reduce government purchases and taxes by equal-size amounts.
Answer: C
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A small country is an international borrower and its domestic demand for loanable funds increases. Consequently, the equilibrium quantity of loanable funds used in the country ________ and the country's international borrowing ________
A) does not change; increases B) does not change; does not change C) increases; increases D) increases; does not change
Each point on a ________ curve shows the willingness of consumers to purchase a product at different prices
A) production possibilities B) marginal cost C) demand D) supply
Total planned expenditure (equals income) is 13,500, autonomous consumption expenditure is 600, the marginal propensity to consume is 0.8, government purchases are 2,700, taxes are 2,500 and planned investment spending is 2,900
Net exports is ________. A) 3,840 B) negative 1,500 C) negative 1,380 D) negative 1,340 E) 2,100
Which term below fits closest to money functioning as a unit of accounting?
A) medium of exchange B) adverse selection C) standard of value D) liquidity