Personal consumption expenditures include:
a. all commodities that business firms buy.
b. the purchase prices paid for stocks and bonds by individual households.
c. the construction of residential housing.
d. all goods and services bought by households.
e. the corrected value of housewives' services.
d
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Suppose the federal government had budget deficits of $40 billion in year 1 and $50 billion in year 2 but had budget surpluses of $20 billion in year 3 and $50 billion in year 4. Also assume that it used its budget surpluses to pay down the public debt. At the end of these four years, the federal government's public debt would have
A. decreased by $70 billion. B. decreased by $20 billion. C. increased by $90 billion. D. increased by $20 billion.
A market exchange rate which has been adjusted for inflation is called a
A) nominal exchange rate. B) foreign market price index. C) real exchange rate. D) domestic exchange factor.
Since demanders of a good are concerned with the total price they have to pay for a good, a unit tax on the good will _____
a. shift the supply curve downward by the entire amount of the tax b. shift the supply curve upward by the entire amount of the tax c. shift the demand curve downward by the entire amount of the tax d. shift the demand curve upward by the entire amount of the tax
In the Keynesian model, a $5 billion decrease in investment leads to ________ in short-run equilibrium output.
A. a greater than $5 billion decrease B. no change. C. a $5 billion decrease D. a $5 billion increase