In the new classical view, an anticipated decrease in government spending would be expected to
a. lower output and the price level.
b. lower output but leave the price level unchanged.
c. leave output unchanged and raise the price level.
d. leave output unchanged and lower the price level.
e. leave both output and the price level unchanged.
D
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In the income-expenditure model, for each price level there is a different equilibrium output level. If we plot one such equilibrium output and price combination, we obtain
A) a point on the aggregate demand curve. B) the slope of the planned expenditures line. C) the slope of the entire aggregate demand curve. D) the aggregate demand curve.
Approximately how much of the income in the United States is earned by workers in the form of wages and fringe benefits?
a. 25 percent b. 50 percent c. 67 percent d. 90 percent
The ease with which an asset can be converted into the medium of exchange is known as _____
Fill in the blank(s) with correct word
The quantity that sellers wish to sell tends to ________ as price increases, and so the supply curve is ________ sloping.
A. decrease; upward B. increase; upward C. decrease; downward D. increase; downward