When real output decreases, planned aggregate expenditures decrease because:
A. induced expenditures decrease.
B. autonomous expenditures increase.
C. induced expenditures increase.
D. autonomous expenditures decrease.
Answer: A
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Consumption of fixed capital (depreciation) can be determined by ________.
A. subtracting net investment from real GDP B. subtracting depreciation from net investment C. adding net investment to real GDP D. subtracting net investment from gross investment
In a perfectly competitive resource market the labor supply curve facing the single firm is
A) vertical. B) horizontal. C) downward-sloping. D) upward-sloping.
Refer to the above graphs. Pizza and beer are the only two goods Jon consumes. The price of beer is $2.00 per pitcher and pizza is $1.25 per slice. If Jon has only $10 to spend for the evening, which graph represents the set of possible combinations of beer and pizza he can consume?
A. Graph A B. Graph B C. Graph C D. Graph D
If the price were $25, this firm would _______ in the short run and _______ in the long run.
A. shut down; stay in business
B. shut down; go out of business
C. operate; stay in business
D. operate; go out of business