Investment spending is a potent force in the macroeconomy, because ________
A) it is subject to large fluctuations
B) it is larger than other spending categories
C) it is the focus of macroeconomic policies
D) it expresses entrepreneurial talent
A
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Answer the next question based on the following data. All figures are in billions of dollars.Gross investment$18National income100Net exports2Personal income85Personal consumption expenditures70Saving5Government purchases20Net domestic product105Statistical discrepancy0The gross domestic product for the above economy is ________.
A. $107 B. $95 C. $110 D. $100
An increase in wages will shift the supply curve up and to the left
Indicate whether the statement is true or false
Which of the following is NOT an argument of non-activists?
A) private spending may show some instability but monetary or fiscal policy designed to stabilize it will just make things worse B) private spending is stable partly because consumption spending is based on permanent income C) even if prices are not completely flexible in the short-run, given time there is enough flexibility for the system to return to the natural level of real GNP D) it is true that monetary and fiscal policy have destabilizing in the past, but economic knowledge is now advanced enough to permit effective countercyclical policy
In economic theory, we assume that the goal of the firm is to:
a. maximize sales revenue. b. maximize market share. c. maximize the benefits it provides to its customers. d. maximize the profit. e. maximize the sales volume.