Between the 1921 recession and 1929, the U.S. economy was described as healthy. Which of the following changes in economic indicators is correctly stated and supports this claim?
(a) Real Gross Domestic Product (RGDP) increased per capita
(b) There were increases in real income but they were more
unequally distributed
(c) Consumer spending on credit increased dramatically
(d) There was a decline in total building construction
(a)
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A falling interest rate ________ the number of investment projects having a positive profit rate, and thus ________ the amount of output that firms demand for themselves
A) increases, raises B) increases, lowers C) decreases, raises D) decreases, lower
If the public has correct rational expectations and the Fed increases both reserve requirements and the discount rate, it would be expected to result in: a. a higher level of real output and a lower price level. b. a lower price level but no change in real output
c. a higher price level and a reduced level of real output. d. a higher price level but no change in real output.
A manufactured good used by labor to produce another good is
a. capital b. a tangible form of a human resource c. a consumption good as long as it is used by labor d. a form of automation e. human capital
A decrease in taxes will shift aggregate demand to the _____, cause consumption to _____, and cause output to _____. Due to the crowding-out effect, investment will _____
Fill in the blank(s) with correct word