According to classical economists, the government should increase government purchases when
A) the benefits of the spending exceed the costs.
B) the economy is in a recession.
C) the economy is likely to go into a recession in the next six months to a year.
D) inflation is lower than its targeted level.
A
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The poverty line is meant to distinguish
A. absolute poverty. B. relative poverty. C. absolute inequality. D. relative inequality.
Following housing market collapse, U.S. personal saving rates have
A) increased. B) decreased. C) remained the same. D) data not yet available.
Deflation
a. reflects falling price levels b. was prevalent during the oil shocks of the 1970s c. under the current trends will cause consumers' purchasing power to shrink d. has been persistent in the U.S. economy since the Great Depression e. is the same as stagflation
An increase in the average price level of an economy will result in an upward shift of the aggregate expenditure function
a. True b. False Indicate whether the statement is true or false