Policy activists can point to the volatility of ________ of private aggregate demand to score points in arguing for discretionary countercyclical policy
A) the consumption segment
B) the consumption and net export segments
C) the investment and net export segments
D) none of the segments
C
You might also like to view...
Real consumption is a function of real disposable income, but the simple Keynesian model uses real GDP instead of real disposable income. This is appropriate since
A. real disposable income is a fixed percentage of real GDP. B. real GDP is a fixed percentage of real disposable income. C. we cannot measure either exactly and the purpose of the exercise is theoretical only. D. real disposable income tends to move proportionately with real GDP.
Advertising costs and other selling costs are
A) efficient. B) fixed costs. C) variable costs. D) marginal costs. E) considered as part of demand because they affect the demand for the good.
Which of the following statements is incorrect for an open economy?
a. A country can have a trade deficit, trade surplus, or balanced trade. b. A country that has a trade deficit has positive net capital outflow. c. Net exports must equal net capital outflow. d. National saving equals domestic investment plus net capital outflow.
The efficient quantity of a pure public good occurs when the marginal cost of producing that good equals the
A) marginal benefit to the median voter. B) marginal benefit to each individual. C) sum of all individual marginal benefits. D) sum of all individual marginal benefits divided by the number of voters.