An increase in autonomous investment in an economy will _____
a. shift the aggregate expenditure line upward
b. shift the aggregate expenditure line downward
c. result in an upward movement along the aggregate expenditure line
d. result in a downward movement along the aggregate expenditure line
e. increase aggregate expenditures only at high levels of income
a
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The New York Times reported in November 2008 that 240,000 additional people lost their jobs which increased the unemployment rate to 6.5 percent
In addition, it was noted that a large number of college graduates were "taking jobs that do not require a college degree." It was also expected that "teens will be thrown out of the labor market....causing youths to miss experience" that could help them prepare for higher-skilled jobs. The article reflects the idea that unemployment is a problem because it results in A) a loss of human capital. B) fewer discouraged workers. C) a loss of income. D) a decrease in the labor force.
The paradox of value refers to the fact that
A) different consumers value the same items differently. B) the value of a good depends on its total utility. C) water costs little, while diamonds cost a lot. D) water brings little consumer surplus.
In the global recession of 2007-2009, world trade declined because nations closed their markets to trading partners
Indicate whether the statement is true or false
There are only two goods for John to consume: food and clothing. If clothing is an inferior good for John when his income rises to $100,000, then food is
A) also an inferior good. B) a normal good. C) Either inferior or normal could be possible. D) Not enough information