During the recession of 2007-2009 in the United States, ________ relative to potential GDP
A) business fixed investment spending rose and net export spending declined
B) federal government purchases rose and changes in business inventories declined
C) consumption spending rose and residential construction spending declined
D) net export spending rose and consumption spending declined
D
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The above table gives information for the nation of East Hampton
a. Find aggregate planned expenditure for each level of real GDP. b. What is the MPC? c. What is the equilibrium level of real GDP?
In the classical view, flexible wage rates would assure
A) low inflation. B) high rates of unemployment. C) high secular inflation rates. D) full employment.
Which of the following measures did President Bush adopt in 2001 to get the economy moving again?
a. A hike in the wages of workers b. A ten-year tax cut c. An increase in taxes on high-income households d. Liquidation of money supply e. A decrease in government spending
If the minimum wage exceeds the equilibrium wage, then
A. there will be no unemployment. B. the minimum wage will not be binding. C. the quantity supplied of labor will exceed the quantity demanded. D. the quantity demanded of labor will exceed the quantity supplied.