The aggregate expenditures function:
a. has the same slope as the aggregate demand curve.
b. is the key determinant of equilibrium real GDP in a fixed-price model.
c. is negatively related to household consumption.
d. is negatively related to net exports.
e. is equal to C+I+G-X.
b
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Ingrid has been waiting for the show "Mamma Mia!" to come to town. When it finally does come, tickets cost $60. Ingrid's reservation price is $75. But when Ingrid tries to buy a ticket, they are sold out. Ingrid decides to try to buy a ticket from a scalper (a person who purchased extra tickets at the box office with the intent to resell them at a higher price). If Ingrid finds someone who is willing to sell her a ticket for $70, she should:
A. purchase the ticket even though doing reduce total economic surplus. B. not purchase the ticket because it is overpriced. C. not purchase the ticket because the cost to the scalper was only $60. D. purchase the ticket because doing so will make her $5 better off.
The crude quantity theory of money and the sophisticated quantity theory of money are approximately similar
A. in times of deflation. B. in times of high unemployment. C. in times of full employment. D. in no set of circumstances.
Which of the following is an example of capital?
A) a gravel truck B) a savings account C) a share of General Motors stock D) a lake
A shift in supply is defined as a change in
A. Equilibrium quantity. B. Price. C. Quantity supplied because of a change in price. D. The supply curve because of a change in a determinant of supply.