Question
18>> Which of the following is not an example of government expenditure? Select one: a.Employing a public school teacher b.A social security payment to an
18>> Which of the following is not an example of government expenditure?
Select one:
a.Employing a public school teacher
b.A social security payment to an elderly person
c.Aid for families with dependent children
d.Purchase of machinery for businesses
19>>Which of the following will cause planned investments to increase?
Select one:
a.the economy is projected to enter a recession
b.there is anticipation that the country will go on lockdown for the next 3 months
c.the cost of labour increases relative to the cost of capital
d.the cost of capital increases relative to the cost of labour
20>>The accelerator principle states:
Select one:
a.if an increase in investment is expected, output will increase
b.if an increase in growth of investment is expected, output will increase
c.if an increase in growth of output is expected, investment will increase
d.small swings in investment are associated with large swings of output
21>>. The accelerator principle shows the relationship between
Select one:
a.National income and inflation
b.National income and unemployment
c.Inflation and unemployment
d.National income and the level of private investment
22>>The economy is currently in a recession due to a reduction in consumer confidence. Output and real interest rate are below their levels prior to the recession. Six months later, the economy has returned to its equilibrium level of output and the previous interest rate. Which of the following must have happened?
Select one:
a.The government increased purchases of goods
b.The government increased the money supply
c.The government decreased the money supply
d.The government increased taxes
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started