What is the slope of the line of aggregate expenditure plotted against output in equilibrium?
a. 0.0
b. 0.5
c. 1.0
d. 1.5
c. 1.0
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Suppose the demand for rescue services in our national parks is perfectly inelastic. This fact would mean that a 31 percent increase in rescue fees leads to
A) a 31 percent decrease in the quantity demanded. B) a 31 percent increase in demand. C) a 31 percent decrease in demand. D) no change in the quantity demanded. E) a decrease in the quantity demanded to 0 rescues.
Suppose attendance is required for a passing grade at Ultimatum University, and the professor repeatedly reminds students of the need to attend every day to survive the class. Nevertheless, we observe many students choosing to stop attending
The students who stop attending include some who even enjoy the class. Using the economic way of thinking, the choice to stop attending generally occurs because A) the students secretly despise the professor. B) the professor secretly despises the students. C) the students value other goods in addition to passing the class. D) the students feel the university has no right to impose such restrictions on their personal freedom.
A decrease in ________ can put your job at risk if aggregate expenditures fall
A) consumer confidence B) the length of a business cycle C) the natural rate of unemployment D) the inflation rate
A bond is:
A. a financial asset that represents partial ownership of a company. B. a payment made periodically to all shareholders of a company. C. an agreement in which a lender gives money to a borrower in exchange for a promise to repay the amount loaned plus an agreed-upon amount of interest. D. a promise by the bond issuer to pay a lump sum at a specified maturity date, and, in some cases, to pay periodic interest at a specific percentage rate.