In the calculation of aggregate income, the value added at each stage of production by each firm equals the firm's:
a. selling price minus payments for inputs.
b. total costs minus the profits and interest payments.
c. total fixed costs and the firm's average rate of return.
d. appreciation in market value of all firms over the last year.
a
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Moving downward along a linear (straight-line) downward sloping demand curve, the
A) slope is constant. B) price is constant. C) quantity is constant. D) elasticity is constant. E) None of the above answers is correct.
During a recession the economy experiences
a. rising employment and income. b. rising employment and falling income. c. rising income and falling employment. d. falling employment and income.
What is an aggregate? How is it used in macroeconomics? Give two examples of specific aggregates that are used in the study of macroeconomics.
What will be an ideal response?
Which of the following government policies is not likely to reduce unemployment?
a) increasing payroll taxes b) making loans to the unemployed who wish to start businesses of their own c) providing retraining subsidies d) offering relocation assistance to the unemployed who find work out of town e) providing publicly funded job placement agencies