Which of the following BEST describes macroeconomics?
A) It is not a social science because its predictions cannot be tested.
B) It analyzes the aggregate effects on the national economy of the choices made by individuals, firms, and governments.
C) It examines how the choices that individuals affect governments.
D) It studies the choices that individuals and businesses make when coping with scarcity.
E) Proving causation is never a problem for macroeconomics.
B
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With normally-sloped IS and LM curves, an increase in government expenditure ________ consumption expenditure since autonomous consumption ________ while induced consumption ________
A) can raise or lower, falls, rises B) can raise or lower, rises, falls C) must decrease, falls, also falls D) must decrease, rises, falls E) must increase, rises, also rises
Gross domestic product is equal to the market value of all final goods and services:
a. exchanged during a period. b. produced domestically during a period. c. produced by the citizens of a nation during a period. d. produced domestically during a period minus the depreciation of productive assets.