The government purchases component of GDP includes salaries paid to soldiers but not Social Security benefits paid to the elderly
a. True
b. False
Indicate whether the statement is true or false
True
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The term ceteris paribus is an economic assumption that means
A) let the buyer beware. B) common sense is reality. C) the detail is in the interrelationship. D) other things being equal.
One way the government can boost the economy out of a recession is:
A. with public announcements telling the public to save their money. B. by increasing government spending. C. by setting price ceilings on most goods so people can afford them. D. None of these will help an economy in recession.
A decrease in aggregate supply means ________.
A. the real domestic output would increase and rises in the price level would become smaller B. both the real domestic output and the price level would decrease C. both the real domestic output and rises in the price level would become greater D. the real domestic output would decrease and the price level would rise
Open market operations involve
A. the buying and selling of existing corporate stocks. B. the buying and selling of existing corporate bonds. C. the buying and selling of Federal Reserve bonds. D. the buying and selling of existing federal government bonds.