Based on the table, the increase in government purchases changes aggregate demand ______.
a. less than the combined changes in consumption purchases
b. more than the combined changes in consumption purchases
c. the same amount as the combined changes in consumption purchases
d. the same amount as the first individual round of consumption purchases
a. less than the combined changes in consumption purchases
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Expectations of asset values by participants in financial markets
A) are not possible to model, given the current state of economic knowledge. B) determine market prices, but are not related to changes in market prices. C) generally do not change. D) determine current market prices and changes in market prices.
Which of the following is not a leading economic indicator?
a. Prices of common stock b. Number of new businesses formed c. Unemployment rate d. New orders for plants and equipment