If aggregate expenditure is less than GDP, inventories will
a. grow and prices will fall
b. grow and GDP will rise
c. grow and GDP will fall
d. shrink and GDP will rise
e. shrink and GDP will fall
C
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According to the permanent income hypothesis, a person's consumption increases only when
A) the person's average lifetime income increases. B) the person saves more. C) the person's current income increases. D) the person's income increases unexpectedly.
Jim is planning on attending a football game that costs $40 . He will have to take the day off from the work losing 8 hours of work. His hourly wage is $10 . He estimates it will cost him around $20 for gas and parking at the game. Jim's total economic cost of attending the game equals
a. $80 b. $40 c. $20 d. $140
In 2009, the U.S. economy was experiencing a(n)
a. recessionary gap. b. inflationary gap. c. balance of trade deficit. d. hyperinflation.
If white workers earn more than black or Hispanic workers primarily because of differences in education, then this means there is no discrimination against blacks or Hispanics. This statement is
A. false, because it could be that black and Hispanic workers face discrimination or other obstacles to receiving a quality college education. B. true, because black and Hispanic workers are paid less because they have less education, not because of discrimination. C. false, because employers are discriminating by choosing not to hire uneducated workers, regardless of their race. D. true, because antidiscrimination laws went into effect a long time ago.