If net exports are negative
A) net foreign investment is positive.
B) capital inflows must be less than capital outflows.
C) net foreign investment is also negative.
D) Both A and B are correct.
C
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Advertising costs and other selling costs are
A) efficient. B) fixed costs. C) variable costs. D) marginal costs. E) considered as part of demand because they affect the demand for the good.
The most comprehensive measure of aggregate output is
A) gross domestic product. B) net national product. C) the stock value of the industrial 500. D) national income.
In the graph for the consumption function, the 45-degree line
A) contains only a consumption component.
B) represents both planned consumption and planned investment.
C) shows various combinations where planned consumption equals real disposable income.
D) reflects a decreasing APC as real disposable income rises.
Which of the following is NOT a measure of the general level of prices?
A. GDP Deflator B. Consumer Price Index C. Producer Price Index D. Personal Sales Deflator Index