Horizontally summing different supply curves assumes
A) that individual firms cannot influence the good's price.
B) that all firms operate in collusion.
C) that only firms who volunteer are included in the summation.
D) all firms produce the same amount of output.
A
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Recently, the U.S. national income accounts have switched to calling government purchases
a. government spending and transfer payments. b. transfer payments and gross investment by government. c. government consumption expenditure and gross investment. d. government wages, salaries, and investment expenditure.
The Keynesian cause-and-effect sequence predicts that a decrease in the money supply will cause interest rates to:
A. fall, boosting investment and shifting the AD curve rightward, leading to an increase in real GDP. B. fall, boosting investment and shifting the AD curve rightward, leading to a decrease in real GDP. C. rise, cutting investment and shifting the AD curve leftward, leading to a decrease in real GDP. D. rise, boosting investment and shifting the AD curve rightward, leading to an increase in real GDP.