What factors will shift the aggregate expenditure function for a given level of real domestic income?
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Intermediate goods and services are excluded in the calculation of GDP.
Is this statement true or false, please advise
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Taxes levied on a firm's earnings ________ the effective cost of funds.
A) lower
B) raise
C) have no effect
D) none of the above
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The vital link between the real and monetary sectors of the economy is the:
A) price level.
B) interest rate.
C) balance of payments.
D) budget deficit.
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The value at which one currency can be exchanged for another currency is called the real exchange rate.
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Which of the following statements regarding cartels is not correct?
A) Cartels are sometimes difficult to maintain because a member can cheat by raising its price above the agreed price.
B) Cartels restrict industry output in order to raise price.
C) Cartels are inherently stable, because oligopolistic firms rarely change price.
D) are easier to establish and maintain when the cost functions of the individual members are more similar to one another.
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Because it has a direct effect on the hiring decisions of firms, a change in business confidence has a much larger impact on the level of economic activity than does a change in consumer confidence.
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