Assume that when there is no crowding out, an increase in government spending increases GDP by $100 billion. If there had been partial crowding out, then GDP would have:
A. increased by more than $100 billion.
B. increased by $100 billion.
C. not increased.
D. increased by less than $100 billion.
Answer: D
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If a nation devotes a larger share of its current production to consumption goods, then
A) it must produce at a point within its PPF. B) its economic growth will slow down. C) some productive factors will become unemployed. D) its PPF will shift inward. E) its PPF will shift outward.
________ in the expected future domestic exchange rate causes the demand for domestic assets to decrease and the domestic currency to ________, everything else held constant
A) An increase; appreciate B) An increase; depreciate C) A decrease; appreciate D) A decrease; depreciate
Graphically, the average productivity of labor is illustrated by:
a. the slope of the total product curve at the relevant point. b. the slope of the marginal productivity curve at the relevant point. c. the negative of the slope of the marginal productivity curve at the relevant point. d. the slope of the chord connecting the origin with the relevant point on the total output curve.
.If we observe a decrease in the price of a good and an increase in the amount of the good bought and sold, this could be explained by
What will be an ideal response?