When government expenditures increase, the interest rate
a. increases, making the change in aggregate demand larger.
b. increases, making the change in aggregate demand smaller
c. decreases, making the change in aggregate demand larger.
d. decreases, making the change in aggregate demand smaller.
b
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Roundabout production occurs when
a. entrepreneurs hire others to work for them, rather than taking the time to produce things themselves b. workers avoid intermediary entrepreneurs and cooperate to produce output themselves c. inefficient technology is used d. producers make capital goods instead of consumption goods e. a company takes time to market shares in the company
Changes in which of the following will not cause the SRAS curve to shift?
A) the wage rate B) prices of nonlabor inputs C) the price level D) productivity E) All of the above will cause the SRAS curve to shift.
The classical economists believed that recessions
A. needed to be fought with monetary and fiscal policy. B. would probably develop into depressions. C. develop into inflations. D. would cure themselves.
A firm reaches the minimum efficient scale in the short run.
Answer the following statement true (T) or false (F)