The portion of planned aggregate expenditure that is independent of output is called ________ expenditure.

A. actual
B. planned
C. potential
D. autonomous


Answer: D

Economics

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Which of the following would most likely not cause market demand for a normal good to decline?

a. An increase in the price of a substitute. b. An increase in the price of a complement. c. A decline in consumer income. d. Consumer expectations that the good will go on sale in the near future. e. An announcement by the Surgeon General that the product contributes to premature death.death.

Economics

Both real GDP and price level in the U.S. exhibited a downward trend since 1929 . Real GDP in 2009 was ten times lower than in 1929, and the price level was nearly five times lower

Indicate whether the statement is true or false

Economics

Under the modern system of fractional reserve banking, banks

A. keep cash reserves equal to only a fraction of their deposit liabilities. B. loan out their excess reserves at interest, which is the key to their profitability. C. are always potentially vulnerable to runs. D. All of these responses are correct.

Economics

Explain whether a policy that results in a larger budget deficit in the current period can lead to a reduction in current output

What will be an ideal response?

Economics