Answer the following statements true (T) or false (F)
1. A decrease in investment can cause a decrease in the price level without affecting total output.
2. The level of total output and the price level can be affected by changes in consumption.
3. Total output and the price level may decline simultaneously.
4. If inventories are accumulating, income must be greater than spending.
5. A situation where exports exceed imports can cause total output to increase.
1. TRUE
2. TRUE
3. TRUE
4. TRUE
5. TRUE
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Every society faces economic trade-offs. This means
A) not everyone can have enough goods to survive. B) some people live better than others do. C) society's output cannot be made available to all. D) producing more of one good means less of another good can be produced.
Within a game theory model, if a change in decision-making raises corporation A's profits by $50 and lowers corporation B's profits by $60, the game is a
A) negative-sum game. B) zero-sum game. C) positive-sum game. D) cooperative game.
Income mobility studies suggest that poverty
a. cannot be alleviated by privately sponsored anti-poverty programs. b. cannot be alleviated by government sponsored anti-poverty programs. c. is a long-term problem for a relatively large number of families. d. is not a long-term problem for most families.
Real business cycle theory explains the business cycle as the result of
a. unstable investment demand. b. excess growth of the quantity of money. C. shocks to consumer spending habits d. fluctuations in productivity.