In a certain economy, the components of aggregate spending are given by:C = 60 + 0.6(Y - T) - 1,000rI = 200 - 1,000rG = 200NX = 50T = 100Given the information about the economy above, the immediate impact on aggregate expenditures of a one-percentage-point increase in the real interest rate (r) from 5 percent to 6 percent is ________, and the eventual impact on short-run equilibrium output is ________.
A. a decrease by 20 units, a decrease by 50 units.
B. an increase by 800 units; a decrease by 2,000 units.
C. an increase by 50 units; a decrease by 135 units.
D. a decrease by 50 units, a decrease by 50 units.
Answer: A
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State whether the following statement is true or false AND explain why: "A decrease in the discount rate will always cause a decrease in the federal reserve funds rate."
Indicate whether the statement is true or false
Which of the following is included in GDP?
a. burglar alarm purchases b. crime c. traffic congestion d. income equality
Men and women in a particular industry are equally qualified. If one employer has a preference for male employees, then in the long run
a. men will receive higher wages b. women will receive higher wages c. there will be no wage differential between men and women d. comparable worth laws would create wage differentials between men and women e. the demand for male employees will decrease
Answer the next question on the basis of the following national income data for the economy. All figures are in billions of dollars.Personal consumption expenditures$400Government purchases128Gross private domestic investment88Net exports7Net foreign factor income0Consumption of fixed capital43Taxes on production and imports50Compensation of employees369Rents12Interest15Proprietors' income52Corporate income taxes36Dividends24Undistributed corporate profits22Statistical discrepancy0The gross domestic product for the above economy is ________.
A. $623 B. $609 C. $592 D. $584