Home / Questions / Potential GDP measures the capacity of the economy in terms of the actual goods and servic
Potential GDP measures the capacity of the economy in terms of the actual goods and services to be produced.
63) Stabilization of business cycle fluctuations focuses on the long run.
64) When measuring the actual output produced in an economy, one should focus on GDP measured in nominal terms.
65) In a open economy, aggregate expenditures are the sum of personal consumption, investment, government, and net export expenditures.
66) The marginal propensity to consume plus the marginal propensity to invest equal one.
67) Temporary tax cuts will have a greater influence on consumption expenditures than temporary tax cuts.
68) Consumer confidence is measured by two indices: the Consumer Sentiment Index and the Consumer Confidence Index.
69) In the consumption function, the real interest rate, consumer confidence, wealth, available consumer credit, and consumer debt are captured in the autonomous consumption term of the consumption function.
70) The slope of the linear consumption function represents induced consumption expenditures.
71) The slope of the linear consumption function represents autonomous consumption expenditures.
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