Suppose consumers and business decision makers become more optimistic about the future, and aggregate expenditures increase. The most likely result is that:
A. real GDP and employment and income to decline.
B. real GDP and employment rise.
C. real GDP rises and employment falls.
D. real GDP falls and employment rises.
Answer: B
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Made in the USA or Made in China has less meaning for products that
A) are a commodity such as iron ore. B) are an agricultural product such as wheat. C) are a product that is technological and involves assembling many different types of sometimes sophisticated components. D) are a product that is produced and consumed domestically. E) were produced fifty years ago versus the types of products manufactured today.
If a monopoly is price discriminating between two groups, A and B, based on observable customer characteristics, there is no difference in the marginal cost of selling to the two groups, and the elasticity of demand for group A is -1.5 while the elasticity of demand for group B is -2.1, which of the following is true?
A. The markup and price for group A customers will be higher than for group B customers. B. The markup and price for group B customers will be higher than for group A customers. C. The markup for group A customers will be higher than for group B customers, but there is not enough information to determine which price will be higher. D. The price for group A customers will be higher than for group B customers, but there is not enough information to determine which markup will be higher.