An expenditure schedule that lies below the full employment level of GDP will cause
a. rising prices.
b. increasing output.
c. falling inventories.
d. falling prices.
d
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Use the following diagram to answer the next question.
In the diagram, solid arrows reflect real flows and broken arrows are monetary flows. Flow (6) might represent
A. the purchase of armored personnel vehicles by government. B. corporate income tax payments. C. the payment of payroll taxes by households. D. the purchase of basketballs by the Ogallala school district.
In the 1870s,
a. cotton prices were declining. b. the Deep South became a food importing region. c. an increasing percentage of small farms specialized in cotton. d. black farmers devoted more of their land to cotton than white farmers. e. All of the above.
If the Fed wants to move the economy up and to the left along the Phillips curve, what must it do?
a. Increase the rate at which the aggregate supply curve shifts upward b. Decrease the rate at which the aggregate demand curve shifts rightward c. Increase the rate at which the aggregate demand curve shifts rightward d. Increase the rate at which the aggregate demand curve shifts leftward e. Decrease the rate at which the aggregate supply curve shifts upward
The definition of interest in economics is ______.
a. the demand for loan money b. the cost of borrowed funds c. the rate of price increase d. the decision to purchase