The ratio of the change in GDP to an initial change in aggregate expenditures (AE) is the:
a. spending multiplier.
b. permanent income rate.
c. marginal expenditure rate.
d. marginal propensity to consume.
a
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Goods that are used for the production of other goods are referred to as:
A) consumer durable goods. B) consumer capital. C) physical capital. D) public goods.
When does a government run a budget surplus?
What will be an ideal response?
A partnership is ________ type of business
A) the most profitable B) the most common C) the least risky D) the least common
The principal way in which an economy self-corrects from an inflationary gap is through
a. deflation, which increases purchasing power. b. inflation, which reduces purchasing power. c. disinflation, which maintains purchasing power. d. price level decreases, which stimulate production.