In calculating GDP using the expenditure approach, the largest component is
A. consumption spending.
B. investment spending.
C. government spending.
D. spending on durable goods.
Answer: A
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If your income stays the same and the price level increases, you will buy fewer goods and services due to the
A) interest rate effect. B) real-balance effect. C) open economy effect. D) aggregate balances effect.
A major contribution of the Solow model is its ________
A) insight into what distinguishes rich economies from poor economies B) explanation of why productivity grows over time C) demonstration that the key to sustained growth is a high level of saving D) encouragement of policies to limit population growth
Long-run aggregate supply curve corresponds to
A) real GDP when the economy is above full employment. B) real GDP when the economy is at full employment. C) the economy outside its production possibilities curve. D) the economy inside its production possibilities curve.
When a labor market fails to reach equilibrium, workers doing the same job can be paid different amounts
a. True b. False Indicate whether the statement is true or false