Which of the following components of aggregate expenditure is most subject to crowding out?
a. Consumption expenditures
b. Investment spending
c. Imports
d. Government purchases of goods and services
e. National saving
b
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The incidence of a tax:
A. indicates how much of the tax burden is borne by suppliers. B. indicates how much of the tax burden is borne by consumers. C. indicates how much of the tax burden is borne by various market participants. D. depends upon the shape of the supply curve only.
The natural rate of unemployment is any type of unemployment that does not go away on its own even in the long run
a. True b. False Indicate whether the statement is true or false
Hours of OperationMarginal Cost16212318424530636742
Krystal runs a nail salon and needs to decide how many hours to stay open. Table 2.2 illustrates her marginal costs of staying open for each additional hour. Suppose that we observe Krystal staying open 5 hours and her marginal benefit of staying open per hour is $36. If she is following the marginal principle, Krystal should:
A. stay open 1 more hour. B. stay open 2 more hours. C. stay open 1 fewer hour. D. stay open 2 fewer hours.
Assume the economy is operating at less than full employment. An expansionary monetary policy will cause interest rates to ________, which will ___________ investment spending
A. decrease; decrease B. decrease; increase C. increase; increase D. increase; decrease