For the economy as a whole, how does income compare to expenditures? Explain
For the economy as a whole income and expenditures are equal. This is because every dollar of spending by some buyer is a dollar of income for some seller.
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An increase in the amount of capital per worker always increases the value of output
a. True b. False Indicate whether the statement is true or false
When the price of corn was "low," consumers in the United States spent a total of $8 billion annually on its consumption. When the price halved, consumer expenditures actually DECREASED to $6 billion annually. This indicates that:
A. the demand for corn is elastic. B. the demand for corn is inelastic. C. corn is a Giffen good. D. the demand curve for corn is upward sloping.
Based on the figure below. Starting from long-run equilibrium at point C, an increase in government spending that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ creating _____gap. 
A. D; an expansionary B. B; no output C. B; expansionary D. A; a recessionary
If the dollar depreciated relative to the yen, it would be expected that
A. the Japanese trade surplus with the U.S. would be increased (or the trade deficit would be reduced). B. Japanese imports from the United States would decrease. C. Japanese exports to the United States would decrease. D. All of the choices are true.