Expansionary fiscal policy will
A) shift the aggregate demand curve to the left.
B) shift the aggregate demand curve to the right.
C) not shift the aggregate demand curve.
D) shift the short-run aggregate supply curve to the left.
Answer: B
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The aggregate production function
A) measures the productivity of labor as leisure decreases. B) increases only with increases in productivity. C) shows that real GDP can increase because of increased productivity as well as increased labor hours. D) cannot show the impacts of productivity improvements.
If the economy is in equilibrium at $1,000 billion national income and if the multiplier is 3 and intended investment is $400 billion, what happens to national income when intended investment decreases to $380 billion? It will
a. increase to $1,020 billion b. increase to $1,060 billion c. decrease to $980 billion d. decrease to $940 billion e. decrease to $970 billion
The average total cost of a firm is calculated by: a. dividing total cost of the firm by the quantity of output produced
b. multiplying the total cost of the firm by the quantity of output produced. c. dividing the total cost of the firm by the price of its output. d. multiplying the total cost of the firm by the price of its output.
What is a situation in which two or more actors have a common interest but cannot automatically collaborate to achieve it?
a. a collective action problem b. a relative gains problem c. a transnational problem d. a sustainability problem