In the short run, total spending affects ________, and in the long run total spending affects ________.
A. prices; output
B. output; unemployment
C. output; prices
D. prices; unemployment
Answer: C
You might also like to view...
When disposal income is $5.0 trillion, consumption expenditure is $4.5 trillion. When disposal income is $6.0 trillion, consumption expenditure is $5.0 trillion. What is the marginal propensity to consume?
What will be an ideal response?
When a supply and demand model is used to analyze the market for labor,
a. demand is generally no longer downward sloping. b. the wage rate is used on the vertical axis as the market price. c. employment is used on the horizontal axis as the market quantity. d. both b and c.
When the MPP of labor is zero, ceteris paribus,
A. Additional units of labor must be employed because other factors of production are being wasted. B. No further increases in output can be achieved by using additional units of labor. C. Employment can be increased only by offering a higher wage rate. D. MRP is at a maximum.
Competition among sellers and government diffuses economic power within the economic units that make up an economy.
Indicate whether the statement is true or false