In a private closed economy, when aggregate expenditures exceed GDP:
A. GDP will decline.
B. business inventories will rise.
C. saving will decline.
D. business inventories will fall.
D. business inventories will fall.
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The tax cut of 2001 turned out to be well-timed because it caused a
a. rightward shift of the aggregate demand curve. b. rightward shift of the aggregate supply curve. c. leftward shift of the aggregate demand curve. d. leftward shift of the aggregate supply curve.
Which of the following about employment discrimination is true?
a. Employers who discriminate against blacks and other minorities will have lower costs than rival firms that hire employees strictly on the basis of productivity. b. After adjusting for factors such as education, experience, and location, the earnings of black men are almost identical to the earnings of white men. c. If minority and white employees in a skill category are equally productive, the profit motive provides employers with a strong incentive to hire minority employees if they are available at a lower wage. d. The empirical evidence indicates that the earnings gap between whites and blacks is entirely the result of worker preference.
Exhibit 1A-5 Straight line
In Exhibit 1A-5, as X increases along the horizontal axis, from point C to point D on the line, the Y values
A. increase so the relationship between X and Y is direct. B. decrease so the relationship between X and Y is inverse. C. remain unchanged so the relationship between X and Y is independent. D. change so the relationship between X and Y is variable.
Exports minus imports of final goods and services
What will be an ideal response?