Consumption:
A. is negatively related to the national price level.
B. is a major component of aggregate demand.
C. measures people's expenditures on real goods and services.
D. All of these are true.
Answer: D
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The Continental Congress faced several constraints in its effort to finance the Revolutionary War. The largest source of funds for the War was:
a. excise taxes. b. domestic bond sales. c. borrowing from foreign powers, such as France. d. printing money.
Suppose there are 10 million part-time workers and 90 million full-time workers in an economy. Five million of the part-time workers switch to full-time work. As a result:
A. the official unemployment rate will fall. B. the official unemployment rate will rise. C. the official unemployment rate will remain unchanged. D. the size of the labor force will increase.
The marginal expenditure of a monopsonist is $4. The wage it currently pays is $3. The labor supply curve has a constant elasticity. What is the elasticity of the labor supply?
A) 0.33 B) 0.66 C) 1 D) 3
When the government changes taxes and spending, it is implementing
A. incomes policy. B. monetary policy. C. supply-side policy. D. fiscal policy.