Capacity utilization increases. What is the impact on aggregate expenditures and income?
A) Both increase.
B) Both decrease.
C) Aggregate expenditure increases and income decreases.
D) Aggregate expenditure decreases and income increases.
A
You might also like to view...
In the principal-agent relationship, the agent is
A) the owner of a resource that has hired another party to act on his behalf. B) the person who is placed in control over resources that are not his own and agrees to compensate the resource owner in the event of outcomes that do not satisfy the resource owner. C) the person who is placed in control over resources that are not his own, with a contractual obligation to use these resources in the interests of some other party. D) the person who places his resources in professional hands in exchange for the professional's promise to act on the resource owner's behalf.
John raises bees to pollinate his apple trees. One of the bees just stung him. This is a(n)
A) private cost. B) social cost. C) internality. D) common property.
In economics, which of the following is considered as financial capital?
a. Offices and warehouses b. Stocks and bonds c. Machinery d. Factories e. Equipment
As a whole, nations are better off after trade and specialization because
A) nations can consume along their production possibilities curve, which is outside of their consumption possibilities curve. B) nations can consume along their consumption possibilities curve, which is inside of their production possibilities curve. C) nations experience an inward shift of their production possibilities curve. D) nations can consume along their consumption possibilities curve, which is outside of their production possibilities curve.