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What is gross domestic product? the total value of goods produced and services provided in a country during one year. What is "Macroeconomics?" The study of the overall economy. and economic factors. What is "Microeconomics?" The study of specific economics. factors (narrowing it down)
1. Gains from trade are. 2. The minimum wage is an example of. 3. Suppose the market of corn is $5 a bushel but the government sets a price of $7. As a result, 4. In a rent controlled market, we would expect to observe.
What does crowding out mean. A process where an increase in government spending crowds out, or decreases other components of aggregate demand, thus making the multiplier smaller. What are automatic stabilizers? Anything that causes the multiplier to become smaller as it insulates the economy from the effects of policy errors or shocks.
Study with Quizlet and memorise flashcards containing terms like Consider an economy whose households save 20% of increases in their income, the tax rate is zero and the country does not trade. If the government reduces transfers by $100 billion, then real GDP will _________ given no change in the aggregate price level. decrease by $400 billion. decrease by $125 billion. decrease by $500 ...
B. more profitable and employment and output rises. 1. If the interest rate is above the Fed's target, the Fed should. buy bonds to increase the money supply. buy bonds to decrease the money supply. sell bonds to increase the money supply. sell bonds to decrease the money supply. 2. The sticky-price theory of the short-run aggregate supply ...
The trend of marginal utility is to increase as consumption increases. false. Developing a new and improved aircraft is an example of a (n) _____ business decision. long-term. The wages paid to employees are an example of a (n) _____ cost. explicit. Which graph shows the effect on the air travel market in Dallas if a new low-cost airline goes ...
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How does government spending affect aggregate demand?
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Study with Quizlet and memorize flashcards containing terms like Which factors influence changes in consumer demand? Check all that apply., Gross domestic product (GDP) is the value of goods and services produced in a country annually. It can best be described as measuring an economy's, Which of these practices describe how producers in oligopolies generally try to create competition? Check ...
