The components of aggregate expenditure that change when real GDP changes are known as
A) unplanned expenditure.
B) induced expenditure.
C) autonomous expenditure.
D) changeable expenditure.
E) planned expenditure.
B
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Income lost by the unemployed is an example of the ________ cost of unemployment, while the additional spending to control crime is an example of the ________ cost of unemployment.
A. psychological; economic B. economic; psychological C. economic; social D. social; psychological
Identify changes in three variables that would cause the FE line to shift to the right
What will be an ideal response?
A shortage creates a situation that forces prices to ________ while a surplus creates a situation that forces prices to ________
A) decrease; increase B) decrease; decrease C) increase; decrease D) increase; increase
Suppose Winston's annual salary as an accountant is $60,000, and his financial assets generate $4,000 per year in interest. One day, after deciding to be his own boss, he quits his job and uses his financial assets to establish a consulting business, which he runs out of his home. To run the business, he outlays $8,000 in cash to cover all the costs involved with running the business, and earns revenues of $150,000. What costs would be considered when calculating economic profit?
A. The opportunity cost of his job and interest forgone of $64,000, and the explicit cost of $8,000 B. The implicit cost of the interest forgone of $4,000 and the explicit cost of $8,000 C. The explicit cost of $8,000 D. The implicit cost of his job of $60,000 and the opportunity cost of forgone interest of $4,000