In a mixed open economy, if aggregate expenditures exceed GDP:
A. I g + X + G = C a .
B. C a + I g + X n + G < domestic output.
C. I g > S.
D. I g + X + G > S a + M + T.
D. I g + X + G > S a + M + T.
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Households in the United States more completely smooth out expenditures on
A) durable goods and nondurable goods than on services. B) durable goods than on nondurable goods and services. C) nondurable goods and services than on durable goods. D) services and durable goods; nondurable goods.
Prices
A. solve the problem of distribution of products among consumers. B. act as rationing devices. C. under laissez-faire produce an efficient allocation of resources. D. do all of the things listed here.
The term excess capacity refers to the fact that a firm produces a lower quantity than it would if it operated at the efficient scale
a. True b. False Indicate whether the statement is true or false
A decrease in the price of milk (and ingredient of ice cream) will result in a(n):
A) shift of the supply curve of ice cream to the left. B) shift of the supply curve of ice cream to the right. C) lower price of ice cream, and thus an increase in the demand for ice cream. D) increase in the demand for ice cream and a decrease in the supply of milk.