A sudden fall in housing prices in Potentia has lowered the confidence of households. Assuming all else equal, this is likely to lead to a(n) ________
A) increase in the demand for construction workers
B) fall in the unemployment rate
C) increase in the overall price level
D) decline in current consumption
D
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Use the following consumption schedule to answer the next question. At income level 3, the amount of consumption is represented by the line segment
A. GH. B. FD. C. FG. D. FH.
Suppose that the government collects $3 million in taxes, pays $2 million in social security benefits, pays $0.5 million in interest on the national debt, and pays workers $1 million to sit at their desks and work as little as possible
The government's contribution to GDP is A) $0. B) $1 million. C) $3 million. D) $3.5 million.
Firms often seek to borrow money to expand their capital stock, and the price they pay for that money is the interest rate. What happens to the demand for money if the interest rate increases?
a. It increases. b. It decreases. c. It does not change. d. The quantity of money demanded will increase.
The slope of the aggregate supply curve is
a. perfectly vertical. b. perfectly horizontal. c. upward. d. downward.