In the aggregate expenditures model, which of the following variables is assumed to be independent of real GDP?
A) Investment
B) Profit
C) Saving
D) Consumption
Ans: A) Investment
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What will be an ideal response?
Cyclical unemployment is:
A. the effect of wages remaining persistently above the market-clearing level. B. unemployment caused by short-term economic fluctuations reflected in GDP growth. C. unemployment caused by workers who are changing their location, job, or career. D. unemployment resulting from a mismatch between the skills workers can offer and the skills demanded.
A government policy that would raise the rate of productivity growth is
A. reducing the government budget surplus. B. taxing expenditures on research and development. C. improving human capital development. D. shifting infrastructure expenditures to the private sector.
Between the first quarter of 2000 and the first quarter of 2006, the value of housing wealth
A. decreased by about $7 trillion. B. increased by about $500 billion. C. decreased by about $600 billion. D. increased by about $13 trillion.