Question

Short run fluctuations in developed economies are most successfully understood by investigating The movement of the...

  1. Short run fluctuations in developed economies are most successfully understood by investigating
  1. The movement of the factors of production
  2. The movement of aggregate expenditures, especially durables and investment
  3. The level of technology and the labor market decisions of households
  4. The current status of monetary policy and fiscal policy and their effect on corporate investment and household labor decisions

  1. The three major components of personal consumption expenditures are
  1. Durables, non-durables, and residential spending
  2. Non-Durables, household construction, and services
  3. Services, non-durables, and durables
  4. Services, non-durables, and residential spending
  1. The three major components of gross private domestic investment are
  1. Construction, changes in inventories, and home building
  2. Non-Residential construction, residential construction, and changes in corporate capital
  3. Inventory accumulation, residential construction, and corporate construction
  4. Residential construction, non-residential construction, and changes in inventories

Homework Answers

Answer #1

1 - Option B

The movement of aggregate expenditure , Investment and durables

The other options are not feasble for the short term study. Hence Option B will be correct.

2 - Option C

Durable , non durable and services

Durable and non durable , are both included in expenditure along with services.

3 - Option D

Residential construction , non residential construction and change in inventory.

Corporate construction is a part of non residential construction. Hence Option D will be correct.

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