Investment diversion is considered an obstacle to economic growth because:
a. it would be better to increase the mortality rate of the country, and thus have a higher per capita real GDP.
b. investment in health care is highly appreciated by the international community.
c. capital infrastructure automatically eliminates population problems.
d. the investments in health care affect only the poorest, the least productive inhabitants of a country.
e. there is no way for a country to build its industries without an increase in investment on infrastructure.
e
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Why is a forward contract also known as a derivative asset?
If aggregate demand increases in the intermediate range of the aggregate supply curve then the:
A. price level rises and real GDP falls. B. price level rises and real GDP rises. C. price level falls and real GDP falls. D. price level falls and real GDP rises.
At a short-run equilibrium output equals ________, while at a long-run equilibrium output equals ________.
A. an output level consistent with the inflation rate; potential output B. the monetary policy reaction function; aggregate demand C. aggregate demand; the monetary policy reaction function D. potential output; an output level consistent with the inflation rate
The law of supply and the law of demand both rely on the concept of opportunity cost.
Answer the following statement true (T) or false (F)