Refer to Figure 11.4. Which diagram illustrates the effect of a decrease in government spending?
A) A B) B C) C D) D
C
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The statement "Every contract, combination in the form of a trust or otherwise, or conspiracy, in restraint of trade or commerce . . ." is found in the
A) Sherman Antitrust Act. B) Clayton Antitrust Act. C) Robinson-Patman Act. D) Interstate Commerce Commission Act.
Under the adaptive expectations hypothesis, which of the following is the effect of a shift to a more expansionary monetary policy?
a. In the short run, the real rate of output will be unaffected, but in the long run, it will increase. b. In the short run, the unemployment rate will decrease, but in the long run, it will self correct to the natural rate of unemployment. c. There will be a permanent increase in the real rate of output, but the inflation rate will also be a little higher. d. In the short run, the impact on the real rate of output is uncertain, but in the long run, output will increase.
Which of the following is the best definition of economics?
A. the study of how consumers spend their income B. the study of how business firms decide what inputs to hire and what outputs to produce C. the study of how individuals and societies choose to use the scarce resources that nature and previous generations have provided D. the study of how the federal government allocates tax dollars
Refer to the diagram. At disposable income level D, consumption is equal to:
A. CD.
B. D minus CD.
C. CD/D.
D. CD plus BD.