What is the relationship between the slope of the aggregate expenditure curve and the expenditure multiplier?
What will be an ideal response?
The expenditure multiplier equals . This relationship exists regardless of the existence or absence of imports or income taxes.
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In open economies
A) saving and investment are necessarily equal. B) as in a closed economy, saving and investment are not necessarily equal. C) saving and investment are not necessarily equal as they are in a closed economy. D) saving and investment are necessarily equal contrary to the case of a closed economy. E) investment always refers to the domestic stock market.
The total quantity of goods and services demanded by households, firms, foreigners, and government at varying price levels is:
a. gross domestic product. b. aggregate demand. c. aggregate expenditure. d. total demand. e. total expenditure.
The BRAC anti-poverty program in Bangladesh gave poor families training on how to raise livestock, a savings account, and help with their physical and mental health. These policies can potentially improve economic growth by increasing a. education, savings, and human capital, respectively. b. physical capital, savings, and natural resources, respectively
c. property rights, research and development, and human capital, respectively. d. education, research and development, and natural resources, respectively.
Most economists believe the short-term labor supply curve is ______.
a. elastic compared to demand b. inelastic compared to demand c. highly responsive to taxes d. highly responsive to wages