The spending multiplier effect is the result of a movement along the aggregate expenditures (AE) line
a. True
b. False
Indicate whether the statement is true or false
False
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The laws of supply and demand did not apply to elephant tusks.
Answer the following statement true (T) or false (F)
For most firms, the major difference between accounting profit and economic profit is that
a. explicit and implicit costs are included in the accounting profit while only explicit costs are included in economic profit. b. accounting profit omits the salaries of managers, and therefore, it is generally greater than economic profit. c. accounting profit is based on opportunity cost, whereas economic profit is based on market transactions. d. accounting profit does not consider the opportunity cost of the firm's equity capital and, therefore, generally overstates economic profit.
The branch of economics that focuses primarily on aggregates is:
A. consumer economics. B. microeconomics. C. macroeconomics. D. scientific economics.
Use the following graph to answer the next question.
In the graph, Dt is the transactions demand for money, Dm is the total demand for money, and Sm is the supply of money. The market is initially in equilibrium at a 6% rate of interest. If the supply of money increases as shown, then the asset demand for money will increase by
A. $75. B. $325. C. $125. D. $200.