Assume equilibrium real GDP per year is equal to full-employment real GDP. Which of the following will cause a recessionary gap?
A) a discovery of a new raw material B) a reduction in aggregate demand
C) a temporary reduction in the price of oil D) an increase in aggregate demand
B
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Which of the following bond ratings by Moody's Investors Service would NOT be considered to be below investment grade?
A) Baa B) Ba C) B D) All of these ratings are considered below investment grade.
An increase in household saving causes consumption to
a. rise and aggregate demand to increase. b. rise and aggregate demand to decrease. c. fall and aggregate demand to increase. d. fall and aggregate demand to decrease.
Ceteris paribus, or "all other things held constant," is an assumption that has what effect on a demand schedule?
a. It takes only prices into account. b. It considers the effects of all possible changes on demand. c. It is accurate no matter what changes occur. d. It is accurate only at one price level.
John Maynard Keynes was the author of
A. The Communist Manifesto. B. The Wealth of Nations. C. The General Theory of Employment, Interest, and Money. D. Eat the Rich: A Treatise on Economics.