If people feel optimistic about the future of the economy ________
A) autonomous consumption might increase
B) autonomous investment might increase
C) it might shift the IS curve to the right
D) all of the above
E) none of the above
D
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Which is the most likely reason why more young people from low-income regions are more likely to join the military, compared to those in high income regions?
A) They are more easily pressured by recruitment officers. B) Their opportunity costs are relatively lower. C) They are more patriotic than their richer counterparts. D) They are, to put it bluntly, more foolish than their richer counterparts.
When actual real GDP is below natural real GDP, we say that
A) the output gap is positive. B) the output gap is negative. C) the output gap has been eliminated. D) the output gap cannot be calculated.