If competitive industry Y is incurring substantial losses, output will: contract as resources move away from industry Y.
Demand for goods and services will rise and, as a result, the output will increase. Although it is consumers who ultimately determine the direction of the economy, governments also influence it through fiscal and monetary policy.
Disposable income is different from discretionary income, which is after-tax income, less payments to maintain a person's standard of living. b. the production side of the economy, exclusively. The government can also increase taxes or lower government spending in order to conduct a fiscal contraction. Aggregate Expenditure Equals GDP Aggregate Expenditure Equals Total Production.
C) an unexpected spurt in sales.
If I stop buying cars, Detroit has to lay off workers and close plants.
I always order there, Yes you are right. In fact, it's the opposite for things like housing.
The GDP price deflator measures the changes in prices for all of the goods and services produced in an economy. Macroeconomics is the branch of economics that studies the economy as a whole. Total Spending Equals GDP.
Katie argues that "gas prices are rising because of the growing demand for gasoline from China and India." Which of the following is a distinguishing feature of a command system? The fundamental problem of economics is:
The total income of everyone in the economy and the total expenditure on the economy's output of goods and services. If the supply is higher than the demand, the market is thrown off balance and costs typically decrease. Based on what they learn from the past, analysts can then begin to forecast the future state of the economy. Answer: C Type: Definition Page: 4 There are two ways the government implement macroeconomic policy. Does the cost go up because of the raw materials needed to make it? For instance, just because an economy goes into recession, doesn't mean that prices will fall.
Explain why the kitchen can produce more meals in a given period of time if each worker specializes in what they do best than if each worker tries to do everything from appetizer to dessert. There are many research paper writing services available now.
Choose from 500 different sets of term:macroeconomics = economy as a whole flashcards on Quizlet. Answer: True Type: Definition Page: 16 Page 38 39. Critical Thinking Questions.
B) take deposits.
Supply speaks to the quantity of something that's available for sale while demand refers to the willingness to purchase it.
This is one theory for encouraging economic growth, particularly in tougher times. A) The law of increasing opportunity costs. d. Most homes spend a lot more on goods than on services.
Other terms you'll hear in reference to the markets are opportunity costs, cost measures, and monopolies.
A) A "free lunch" is possible but only for a limited number of people. Every now and then, you will hear government officials discussing fiscal stimulus.
This is because with rising (real) GDP levels, we know the output is higher and, hence, more laborers are needed to keep up with the greater levels of production.
This figure is like a snapshot of the economy at a certain point in time. See the answer. Expert Answer 100% (1 rating) Previous question Next question Transcribed … In economics, what does scarcity mean? Yet, there is no doubt that the economy and the things we learn through economics affects our everyday lives.
What ultimately determines output is demand.
Page 1. Even though local newspapers are very inexpensive, people rarely buy more than one of them each day.
A) That a shortage of a particular good will cause the price to fall.
Essentially, here we're talking about how much the price of something can fluctuate before it has a negative impact on sales.