If a component of aggregate demand increases,
A) GDP in the United States is likely to increase less than that component of spending increased.
B) GDP in the United States is likely to increase more than that component of spending increased.
C) GDP in the United States is likely to decrease.
D) GDP in the United States will not change.
B
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Answer the following statements true (T) or false (F)
1. Firms in monopolistic competition sell a similar but differentiated product. 2. 3. 4. 5.
At any point on an indifference curve, the slope indicates:
A. the way the consumer's budget is allocated between the two goods. B. the market rate of substitution between the two goods. C. how the total satisfaction of the consumer changes with different market baskets. D. None of the statements is correct.
Earnings usually reflect a person's productivity. What are factors that cause differences in productivity across people so that earnings differ too?
What will be an ideal response?
What is the main argument which explains why an increased public deficit financed tax cut may not result in increased consumption?
A) People will increase savings to "finance" debt repayment by future generations. B) People will increase consumption to "finance" debt repayment by future generations. C) Savings is determined by uncertain events, the timing of future illnesses and death. D) Savings is determined by certain events, the timing of future illnesses and death.