In the aggregate expenditures model, if aggregate expenditures (AE) equals $7 trillion and GDP equals $8 trillion, then inventory accumulation equals $1 trillion
a. True
b. False
Indicate whether the statement is true or false
True
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Refer to Figure 4.1. Suppose Alvin chooses Bottom, while Simon chooses Up, and Theodore chooses Right. Alvin's payoff will be
A) 2. B) 6. C) 8. D) 16.
Economics is the study of how people:
a. vote for political leaders who decide what is to be produced. b. make choices to produce and consume goods and services. c. establish social institutions that maximize well-being. d. develop value systems that affect their consumption choices.
The perfect competition price system is the most efficient because it equates MC = P = MU.
Answer the following statement true (T) or false (F)
Which of the following portions of the national debt impose a net interest burden on the federal government?
A. treasury bonds held by government agencies B. treasury bonds held by private investors C. treasury bonds held by the Federal Reserve system D. treasury bonds held in the Social Security Trust Fund