What is true of the slope of the aggregate expenditure line when factors of investment, government spending, and net exports are taken into account?
a. It is always 90 degrees.
b. It is always horizontal.
c. It is always positive.
d. It is always negative.
c. It is always positive.
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A natural monopoly has
A. many producers of the same product. B. easy access to the market. C. a single firm providing the industry's output. D. one buyer of output.
The statement "The income tax is unfair to those who work hard to earn their incomes" is an example of positive economic analysis
a. True b. False Indicate whether the statement is true or false
After Hurricane Katrina, the supply curve for oil shifted to the left, and as a result
A. gas prices remained at the equilibrium price. B. there was a corresponding shift of the demand curve. C. a new equilibrium price was reached. D. the equilibrium point moved along the supply curve.
Provisions in the law that automatically increase government spending or decrease taxes when real output declines are called:
A. the marginal propensity to consume. B. automatic stabilizers. C. autonomous stabilizers. D. the income-expenditure multiplier.