A decrease in aggregate expenditure has what result on equilibrium GDP?
A) Equilibrium GDP falls.
B) Equilibrium GDP rises.
C) Equilibrium GDP is not affected by a decrease in aggregate expenditure.
D) Equilibrium GDP may rise or fall depending on the size of the decrease in aggregate expenditure relative to the initial level of GDP.
A
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In the figure above, if income were distributed equally across all households, the poorest 10 percent of households would receive ________ of total income
A) 5 percent B) 10 percent C) 15 percent D) 20 percent
Explain why a monopoly or a perfectly competitive firm does not consider a rival firm's behavior, but an oligopoly and a monopolistically competitive firm do
What will be an ideal response?
If there is no one who is interested in borrowing from a bank:
a. the bank's excess reserves will be zero. b. there will be no process of money creation. c. the required reserve ratio must be equal to zero. d. the required reserve ratio must be equal to 100 percent.
Which of the following works to limit trade by explicitly raising prices (i.e. as a tax)?
A. Tariffs B. Buy "American advertising" C. Non-tariff regulatory barriers D. Quotas