A consumer's demand for CDs can be represented by a line with slope -b and intercept a. If the current price of CDs is $P, then the ratio of consumer surplus to total expenditures on CDs equals
A) (a - P)(a - bP).
B) 1/2(a - P)(a - bP).
C) D(a - bP).
D) (a - P)/P.
E) (a/b - P)/(2P).
E
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During World War II the United States' economy grew by about ________ percent a year.
A. 5 B. 10 C. 15 D. 20
Expansionary fiscal policy may have an even smaller effect on aggregate demand in the open economy than a closed economy
a. True b. False Indicate whether the statement is true or false
The presence of involuntary part-time workers
a. causes the official unemployment rate to underestimate actual unemployment b. causes the official unemployment rate to overestimate actual unemployment c. has no effect on the accuracy of the official unemployment rate d. is accounted for in the official unemployment rate e. is insignificant in the U.S. economy and thus is no cause for concern
Which of the following events will lead to a decrease in the demand for money?
(a) An increase in the level of aggregate output; (b) A decrease in the supply of money; (c) A decrease in the interest rate; (d) A decrease in the price level.