Practice Quiz 4 Answers

Practice Quiz 4 Answers

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Unformatted text preview: nflation rates in the US was reversed in the early 1980s b. the volatility of GDP was lower after WWII c. inflation was highest in the 1930s d. consumption spending is the largest component of aggregate demand (AD) the false statement would be inflation highest in the 1930s - this was the great depression and prices were falling 13. The dashed line represents which component of aggregate demand? a. Consumption b. Investment c. Government d. Exports e. Imports The dashed line is government spending because it is not volatile – pretty steady increase – and it is increasing slower than the other components of AD. 2000 2001 2002 2003 2004 2005 2006 Personal Gross private Government consumption domestic Exports Imports Spending expenditures investment 6,739.40 1,735.50 1,096.30 1,475.80 1,721.60 7,...
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This document was uploaded on 03/01/2014 for the course ECN 202 at Rhode Island.

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