If the federal government increases the amount of Social Security benefits for retired persons, then the
A. consumption schedule will shift upward.
B. aggregate demand curve will shift outward.
C. effect on equilibrium GDP will be the same as a cut in taxes.
D. All of the above are correct.
Answer: D
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Using the table above, the Current Population Survey classifies the group of individuals obtained by adding groups 5 and 6 as
A) the labor force. B) employed. C) discouraged workers. D) unemployed. E) the working age population.
The entry of new firms into a perfectly competitive market shifts the demand curve outward.
Answer the following statement true (T) or false (F)
Everything else held constant, an increase in net exports ________ aggregate ________
A) increases; demand B) decreases; demand C) decreases; supply D) increases; supply
If the food stamp program in the United States moved from coupons redeemable for food to cash payments
A) everyone would buy less food and more of other goods. B) everyone would buy more food and less of other goods. C) some people might buy less food and obtain a higher level of utility. D) some people might buy less food and obtain a lower level of utility.