Refer to the above figure. If real GDP is $4 trillion, then
A. consumption expenditures are too low.
B. unplanned inventories will increase.
C. actual investment spending equals $1 trillion as planned investment spending plus unplanned inventory increases equal $1 trillion.
D. unplanned inventories will decrease.
Answer: D
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If you believe that expectations react quickly, you are likely a
A. believer in rational expectations. B. Keynesian. C. theoretical economist. D. None of the above is correct.
It is estimated that, on the average and ________, union wages are ________ because ________
A) taking account of skill differentials; 30 percent higher than nonunion wages; union workers are better qualified than nonunion workers B) without taking account of skill differentials; equal to nonunion wages; differentiating based on union membership is discrimination and illegal C) without taking account of skill differentials; 15-20 percent higher than nonunion wages; employers are biased against nonunion workers D) taking account of skill differentials; 30 percent higher than nonunion wages; in some industries union workers perform jobs that require greater skill than nonunion workers and employers show bias against nonunion workers E) without taking account of skill differentials; 30 percent higher than nonunion wages; in some industries union workers perform jobs that require greater skill than nonunion workers
In the trade-based theory of exchange rate determination, the quantity supplied of a currency in the foreign exchange market results from
A) its exports of goods and services. B) the nation's demand for imports C) the level of domestic absorption. D) the import demand curve.
Each month, how many households does the U.S. Bureau of the Census survey in the Current Population Survey (CPS) in order to determine the unemployment rates?
a. About 140,000 households b. About 60,000 households c. About 140,000 businesses and government agencies d. About 60,000 businesses and government agencies