Aggregate income equals:
a. the sum of income earned by all laborers in the world economy
b. the sum of income earned by all workers in the private sector.
c. the sum of the income earned by all the resource suppliers in an economy.
d. the total income of all employees after payment of income tax.
e. the total income of all employees after purchases of necessities.
c
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Stock and Watson found that ________ was responsible for about 20—30 % of the reduction in output volatility that occurred in the mid-1980s
A) reduced shocks to productivity B) reduced shocks to food and commodity prices C) better monetary policy D) better inventory control
The vicious circle of poverty refers to the fact that in LDCs,
a. low living standards lead to declines in population growth. b. too much spending leads to periods of recession. c. people are poor because too much is spent on capital goods. d. there are not enough people in the under-15 age groups. e. poverty leads to low investment in capital goods.
Which of the following explains why elected representatives will find borrowing to be an attractive method of financing current government programs?
What will be an ideal response?
Refer to Goods X and Y. Which of the following can cause a parallel, outward shift in the budget line?
Assume that good X is on the horizontal axis and good Y is on the vertical axis in the consumer-choice diagram. PX denotes the price of good X, PY is the price of good Y, and I is the consumer's income. Unless otherwise stated, the consumer's preferences are assumed to satisfy the standard assumptions. a. A rise in the consumer's income. b. A rise in the marginal value of X in terms of Y. c. A fall in the price of good X. d. A fall in the price of good Y.