In the aggregate expenditures model, if aggregate expenditures (AE) are greater than GDP, then:
a. inventory is accumulated.
b. inventory is unchanged.
c. employment decreases.
d. employment increases.
d
You might also like to view...
Suppose that at first the price of a bag of coffee is ?$15 and the price of a box of tea is ?$9. ?Then, the price of a bag of coffee changes to ?$30 and the price of a box of tea changes to ?$21. What has happened the money prices and relative prices of these two? goods?
What will be an ideal response?
Which union recently agreed to a 3-year wage freeze and the loss of 3,000 jobs in exchange for plant upgrades and limited imports?
A. The United Steel Workers B. The United Automobile and Aerospace Workers C. The International Association of Machinists and Aerospace Workers D. The International Brotherhood of Electrical Workers
Refer to the following figure showing demand and marginal revenue for a monopoly.
At any price above $________ demand is elastic.
A. $5 B. $15 C. zero D. $20 E. $10
Bill attends a local basketball game. The teams are very unbalanced, the play is bad, and the score quickly reaches 36-2. At halftime, Bill realizes he's having no fun, leaves the game, and goes home. Bill's behavior is NOT determined by
A. sunk costs. B. utility maximization. C. economic logic. D. None of these is true.