In the short run with predetermined prices, when output is less than planned aggregate expenditure, firms will:
A. decrease planned aggregate expenditure.
B. increase planned aggregate expenditure.
C. increase production.
D. reduce production.
Answer: C
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Rent controls encourage investment in housing because they bring stability to the market.
Answer the following statement true (T) or false (F)
SUMMARY OUTPUTRegression StatisticsMultiple R0.971R-SquareAAdjusted R-SquareBStandard Error30.462Observations51 ANOVA dfSSMSFSignificance FRegressionC747851.57373925.79402.989.89E-31Residual48D927.91 Total50792391.11 CoefficientsStandard Errort StatP-ValueLower 95%Upper 95%InterceptE62.1326.791.60E-301539.661789.51Price of Roses-6.68F-1.411.64E-01-16.162.81Disposable Income (M)9.730.34G1.23E-319.0410.42Determine the intercept coefficient (point E) and whether that estimate is statistically significant at the 5 percent level.
A. 1,664.46 and statistically insignificant since the P-value is less than 5 percent. B. 2.32 and statistically significant since the t-statistic is greater than 2 in absolute value. C. 1,664.46 and statistically significant since the P-value is less than 5 percent. D. 2.32 and statistically insignificant since the t-statistic is less than 2 in absolute value.
The new classical explanation of aggregate supply is also known as
A) Monetarism. B) Keynesianism. C) the misperception theory. D) the adaptive expectations theory.
If Japan experiences a period of deflation and the United States does not, what will happen in the United States?
a. an increase in aggregate supply b. a decrease in aggregate supply c. a decrease in aggregate demand d. an increase in aggregate demand