The aggregate expenditure model focuses on the ___ relationship between real spending and ____
Fill in the blank(s) with the appropriate word(s).
short run; real GDP
You might also like to view...
Which one of the following helps preserve incentives to develop new technologies?
A) patents B) tariffs C) income taxes D) quantity restrictions on imports
An efficiency wage
a. gives an employee an incentive to shirk his duties. b. is lower than the equilibrium wage for that position and region. c. is higher than the equilibrium wage for that position and region. d. both a and b are correct.
When a firm minimizes its losses in the short run,
A. It continues to produce only if price exceeds average variable cost. B. The firm enters or exits from the market. C. It continues to produce only if price exceeds marginal revenue. D. The firm makes an investment decision.
If allocating dorm rooms changes from allocation by lottery to allocation by the market:
A. the allocation problem is still an economic problem. B. it becomes a political problem but not an economic problem. C. it becomes a social problem but not an economic problem. D. it becomes an economic problem.