When income increases, aggregate expenditure will rise by
a. the change in GDP
b. the change in GDP minus the MPC
c. the change in GDP times the MPC
d. the MPC
e. the change in GDP divided by the MPC
C
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In economics, the term "capital" refers to
A) the money in one's pocket. B) buildings and equipment. C) mineral resources. D) consumer goods.
A temporary decrease in the price of oil would be considered a:
A. long-run supply shock. B. demand shock. C. short-run supply shock. D. The changing price of oil would not affect any of these.
A newspaper headline reads: "Fed Cuts Federal Funds Rate for Fifth Time This Year." This headline indicates that the Federal Reserve is most likely trying to:
a. Tighten monetary policy b. Raise interest rates c. Ease monetary policy d. Reduce inflation in the economy
Price Signals
What will be an ideal response?