If the aggregate expenditure line shows, for a given price level, how planned spending relates to the level of real GDP in the economy, then which of the following is true?
a. The quantity of real GDP demanded is found where aggregate spending equals real GDP.
b. The quantity of real GDP demanded is found where the consumption function crosses the 45 degree line.
c. The quantity of real GDP demanded is found where intended inventory investment equals government spending.
d. The quantity of real GDP demanded is found where intended inventory investment equals to zero.
a
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Adverse selection in insurance requires that
a. all people face the same risk b. potential customers facing more risk are more interested in purchasing insurance c. people are not risk averse d. insurers can tell higher risk people from lower risk people
Karl Marx envisioned communism as an economic system that blends the best elements of capitalism and socialism
a. True b. False Indicate whether the statement is true or false