Within the Keynesian aggregate expenditures model, which of the following autonomous changes would decrease the equilibrium output?
A. A decrease in investment spending.
B. An increase in net exports.
C. An increase in government spending.
D. An increase in consumption expenditures
Answer: A
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"Senior citizens deserve an income that will allow them to live in comfort for their remaining years." This is
a. neither a normative nor a positive statement b. both a positive and a normative statement c. strictly a macroeconomic issue d. a positive statement e. a normative statement
The major consideration of whether something can serve as money is that it must be
A. printed by each nation's government or banking authority. B. freely available to all who want it. C. exchangeable for other types of money. D. acceptable as a means of payment.
To maximize profits, the discriminating monopolist sells abroad rather than selling additional units at home because:
a. the home market is just too competitive. b. there would be more incentive for entry from other firms. c. the market price at home would rise and the firm would lose customers. d. it would lower total profits if it lowered its home price in order to sell the additional units.
Unemployment due to the length of time it takes to find employment upon entering the labor force or voluntarily between jobs is called
A. cyclical unemployment. B. frictional unemployment. C. structural unemployment. D. natural unemployment.