A. consumption expected future profits
B. investment, interest rates
C. investment expected future profits
D. stock building interest rates
Related Mcqs:
- If the economy is in the expansionary phase of the business cycle, aggregate demand ____ unemployment ____ inflation ____ payments is likely to move towards ____?
A. falls; rise; falls; surplus
B. is static; low; rise; deficit;
C. falls; falls; falls; surplus
D. rise; falls; rises; deficit - The accelerator assumes ?
A. The marginal propensity to consume is constant
B. The economy is at full employment
C. There is a constant relationship between net investment and the rate of change of output
D. The multiplier is constant - The Keynesian model is a good guide to ____ behavior and the classical model describes behavior in ______?
A. long run, short run
B. flexible imperfect markets
C. short-term long run
D. long run, imperfect markets - An advocate of the classical model of the economy would claim that unemployment is created when the ____ is above its equilibrium level in the ______?
A. price level, aggregate economy
B. tax rate, government budget
C. wage rate, labor market
D. interest rate, market for loanable funds - The kinked demand curve model of oligopoly assumes the elasticity of demand ?
A. in response to a price increase is less elastic than the elasticity of demand in response to a price decrease
B. is perfectly elastic if price increases and perfectly inelastic if price decreases
C. is constant regardless of whether price increase of decrease.
D. in response to a price increases is more elastic than the elasticity of demand in response to a price decrease - The marginal product model assumes that ?
A. individuals pay the full cost of their education
B. government subsidizes schooling
C. education persons migrate more
D. capital and unskilled labor are complements - The classical model of macroeconomics assumes ?
A. wages and prices are sticky
B. wages and prices are flexible
C. the economy may operate below full capacity
D. the economy is always at full capacity
E. A and C
F. B and D - If the economy is in the though phase of the business cycle, aggregate demand ____ unemployment ______ inflation ______ and the current account of the balance of payments is likely to move towards ________?
A. falls; falls; falls; surplus
B. falls; rises; falls; surplus
C. is static; low; rises; deficit
D. rises; falls; rises; deficit - The accelerator theory of investment says that induced investment is determined by ?
A. the level of national income
B. the level of aggregate demand
C. the rate of change of national income
D. expectations - Automatic stabilisers act to ____ government expenditures and ____ government revenues during recessions ?
A. increase: increase
B. decrease; decrease
C. increase; decrease
D. decrease; increase
