In Figure 1 above if the economy were at Y3 then we would expect there to be:
A. an increase in consumption spending.
B. a reduction in inventories.
C. an increase in inventories.
D. no change in inventories.
Answer: C
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In January of 2001, the population of the United States was 276.8 million, the working-age population was 210.2 million, the total number of people employed was 140 million, and the total number of people unemployed was 5.0 million
What was the labor force participation rate? A) 78 percent B) 56 percent C) 69 percent D) 90 percent E) 67 percent
It is important to distinguish investment expenditures from consumption expenditures because
A) households invest and business firms consume. B) foreign firms invest and domestic firms consume C) investment, not consumption, increases the natural real GDP. D) consumption, not investment, increases natural real GDP.