Within the IS-LM curve model, a decline in expectations would
a. lower income and the interest rate.
b. increase income and lower the interest rate.
c. lower income, but leave the interest rate unchanged.
d. lower the interest rate, but leave income unchanged.
e. lower income and increase the interest rate.
A
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To maintain a price below the equilibrium price,
a. demand must increase. b. supply must increase. c. the government must set a ceiling price. d. supply must decrease.
Privatization of Social Security involves
A) tax reductions. B) benefit reductions. C) increasing the retirement age. D) investing portions of the trust fund in corporate securities.
Which of the following goods probably has the lowest (absolute value) short-run price elasticity of demand?
A) fresh fruit B) frozen dinners C) cars D) refrigerators
For an actual economy, total expenditures on goods and services by households does not equal GDP because a. household spending exceeds their incomes
b. household expenditures on goods and services falls short of GDP, since household save for the future. c. household expenditures include only goods, since services are intangible and cannot be measured accurately. d. household expenditures on goods and services are made using borrowed funds.