In the aggregate expenditures model, an increase in government spending causes a(n):
A. upward shift in the aggregate expenditures curve.
B. downward shift in the aggregate expenditures curve.
C. leftward movement along the aggregate expenditures curve.
D. rightward movement along the aggregate expenditures curve.
Answer: A
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Higher rates of inflation reduce spending because:
A. the Fed reacts to the higher inflation by lowering interest rates. B. the real value of money increases. C. the reduction in wealth, resulting from the reduced real value of money, restricts spending. D. resources are redistributed from low-spending households to high-spending households.
A key resource is a material:
A) that is unlimited in supply. B) that is rationed by the government. C) that is available to monopolies only. D) that is essential for the production of a good.
A monopolistic competitive firm’s quantity produced is which of the following?
a. Greater than a monopolist but less than a perfect competition firm b. Less than a monopolists but greater than a perfect competition firm c. Greater than a monopolists and greater than a perfect competition firm d. Less than a monopolists and less than a perfect competition firm
If you win the lottery this would be great for you, but if everyone simultaneously won the lottery this wouldn't be nearly as good, why?
a. association is not causation b. it is a violation of ceteris paribus c. the fallacy of composition d. what appear to be positive outcomes in society are actually normative.