The amount by which aggregate expenditures exceed those associated with the full-employment level of domestic output can best be described as
A. the multiplier.
B. a recessionary expenditure gap.
C. the average propensity to save.
D. an inflationary expenditure gap.
Answer: D
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Between 1981 and 2013, the overall mortality rate in the United States
A) remained fairly constant. B) decreased by more than 25 percent. C) slowly but steadily increased. D) was similar to the average rate in most low-income countries.
Suppose a permanent increase in demand for the Argentinean peso causes a chronic shortage of this currency in the foreign exchange market. The Argentinean government should then:
a. request other countries to revalue their currency. b. devalue the peso. c. allow the peso to appreciate. d. restricts exports. e. restrict imports.
If ABC and XYZ operate to jointly maximize profits and agree to share the profit equally, then how much profit will each of them earn?
a. $450
b. $250
c. $105
d. $125
Based on the graph showing the effective federal funds rate, in what context did the downturn in interest rates after the 2001 recession occur?
a. Interest rates were higher than they were at the start of previous downturns.
b. Interest rates were lower than they were at the start of previous downturns.
c. Interest rates were at an all-time low before the start of the downturn.
d. Interest rates were at an all-time high before the start of the downturn.