Which of the following is NOT included in the M2 measure of money?
A) checking deposits
B) traveler's checks
C) time deposits
D) shares of the stocks of large companies
D
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The four components of aggregate expenditures are:
A. consumption, investment, government spending, and net exports. B. consumption, interest payments, government spending, and net exports. C. consumption, imports, government spending, and net exports. D. consumer durables, investment, government spending, and net exports.
A restaurant buys fish to offer as a daily menu special. The purchase of the fish by the restaurant is
A) an intermediate good. B) part of net exports if the fish was caught beyond the U.S. border. C) an investment. D) an example of government expenditures on goods and services. E) a consumption expenditure.
An increase in the marginal income tax rate will increase the quantity of labor supplied.
Answer the following statement true (T) or false (F)
Suppose an increase in market demand occurs in a constant-cost industry. As a result
A. perfectly competitive firms will eventually enter the industry. B. the new long-run equilibrium price will be lower than the original long-run equilibrium price. C. equilibrium quantity will decline. D. perfectly competitive firms will eventually leave the industry.