To get a complete measure of the total spending on U.S.-produced final goods and services, one must adjust aggregate demand by
a. adding imports and subtracting exports.
b. adding imports that are purchased by U.S. consumers.
c. adding exports and subtracting imports.
d. subtracting exports sold to foreigners.
c
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The manager of a perfectly competitive firm has to decide:
A) the quantity of output the firm should produce. B) the price the firm should charge for its output. C) the quantity of output the firm should produce and the price it should charge. D) neither the quantity of output the firm should produce nor the price it should charge because the market makes both of these decisions.
In the long run
a. all inputs are fixed. b. all inputs are variable. c. some inputs are fixed. d. production levels never change.
If you were a Keynesian economist, you would
a. believe that saving is always detrimental to our economic health b. believe that increased saving always leads to lower national income0 c. believe that increased investment is undesirable d. see economic trouble ahead if saving increases unattended by a complementary increase in intended investment e. actively try to achieve the paradox of thrift for our national economy
The most important function of money is when money is used as a
A. medium of exchange. B. standard of deferred payment. C. store of value. D. unit of accounting.