Other things equal, if planned investment spending is less than actual investment spending, then aggregate expenditure will be ________ real GDP and employment will ________
A) greater than; increase
B) greater than; decrease
C) less than; increase
D) less than; decrease
D
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Recall the Application about how to wash carbon out of the air to answer the following question(s).Recall the Application. Assume a firm that produces CO2 has a marginal cost of abatement of $90 per ton and faces a carbon tax of $70 per ton. If the cost of carbon washing is $50 per ton, the firm could save ________ per ton and emit ________ carbon into the atmosphere by using a carbon washing machine.
A. $40; less B. $40; more C. $20; less D. $20; more
Which statement is TRUE when rational expectations exist and there is a change in monetary policy which is unexpected?
A. The change in monetary policy does not change equilibrium in either the short-run or long-run. B. The change in monetary policy leads to a simultaneous shift of the short-run aggregate supply curve. C. The change in monetary policy leads to a change in aggregate demand that leads to a temporary short-run equilibrium that is different from the long-run equilibrium. D. The change in monetary policy lead to a simultaneous shift in the long-run aggregate supply curve.
Refer to the information provided in Table 24.8 below to answer the question(s) that follow.Table 24.8All Figures in Billions of DollarsOutput (Income)Net TaxesConsumption Spending (C = 100 + 0.9Yd)SavingsPlannedInvestment PurchasesGovernment Spending2,6001002,3501501502002,8001002,5301701502003,0001002,7101901502003,2001002,8902101502003,4001003,0702301502003,6001003,2502501502003,8001003,430270150200Refer to Table 24.8. If taxes are reduced by $50 billion and government spending is reduced by $50 billion, the new equilibrium level of income
A. is $3,550 billion. B. is $3,350 billion. C. is $1,600 billion. D. cannot be determined from this information.
In monopolistic competition, modest changes in the output or price of any single firm will have no significant influence on the sales of other firms.
Answer the following statement true (T) or false (F)