In the Keynesian model of aggregate expenditure, real GDP is determined by the
a) price level
b) level of aggregate demand
c) level of aggregate supply
d) level of taxes
b) level of aggregate demand
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Which of the following variables is capable of continually increasing aggregate demand with no offsetting influence on any of the components of total spending?
A) the inflation rate B) the interest rate C) government spending D) the money supply E) the wage rate
The general approaches to global poverty reduction include all of the following except
A. Redistribution of incomes across nations. B. Economic growth that raises average incomes. C. Redistribution of incomes within countries. D. An increase in government control of resources.
Which of the following is an accurate difference between (A) high interest rates and (B) low interest rates?
a. (A) has lower use of short-term CDs; (B) has higher use of short-term CDs. b. (A) has a high demand for money; (B) has a low demand for money. c. (A) has an upward sloping demand curve for money; (B) has a downward sloping demand curve for money. d. (A) has high opportunity costs for holding money; (B) has low opportunity costs for holding money.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, as the economy moves from Point A to Point E, the opportunity cost of motorcycles, measured in terms of hybrid cars
A. remains constant. B. decreases. C. initially increases, then decreases. D. increases.