In the circular flow diagram, aggregate expenditure includes
A) consumption expenditure, saving, investment and government expenditure.
B) consumption expenditure, saving, investment and net exports.
C) consumption expenditure, investment, government expenditure and net exports.
D) consumption expenditure, saving, government expenditure and net exports.
C
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The table below shows the utility schedule for a consumer of candy bars. Candy Bars ConsumedTotal Utility001529312414515615713Marginal utility becomes negative with the consumption of the
A. sixth candy bar. B. seventh candy bar. C. fifth candy bar. D. second candy bar.
When good weather speeds the check-clearing process, float tends to ________ causing the Fed to initiate defensive open market ________
A) decrease; sales B) decrease; purchases C) increase; sales D) increase; purchases
Which of the following is true? a. At the natural rate of unemployment, the economy is considered to be at full employment
b. At full employment, the economy is producing at its potential output. c. If unemployment is greater than its natural rate, the economy is producing at less than its potential output. d. All of the above are true.
If a variable other than the price level changes, the AD curve shifts
a. True b. False