Leakages are greater than injections when total planned expenditures exceed real GDP
a. True
b. False
Indicate whether the statement is true or false
False
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Florencia has decided to make computer literacy mandatory in high schools. This is expected to bring about a technological growth and cause: a. the long-run aggregate supply curve to shift rightward
b. the long-run aggregate supply curve to shift leftward. c. an upward movement along the long-run aggregate supply curve. d. a downward movement along the long-run aggregate supply curve.
Assume that the expectation of declining housing prices cause households to reduce their demand for new houses and the financing that accompanies it. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the quantity of real loanable funds per time period and the nominal value of the domestic currency in the context of the
Three-Sector-Model? a. Real GDP falls, and nominal value of the domestic currency rises. b. Real GDP falls, and nominal value of the domestic currency remains the same. c. Real GDP rises, and nominal value of the domestic currency rises. d. Real GDP falls, and nominal value of the domestic currency falls. e. There is not enough information to determine what happens to these two macroeconomic variables.
The total market demand for the wheat grown by U.S. farmers is
A) always equal to the total supply. B) completely or perfectly elastic. C) completely or perfectly inelastic. D) less than completely or perfectly elastic. E) unit elastic at the prevailing price.
According to the capture hypothesis, it appears that regulators eventually end up
A) adopting policies that benefit the firms being regulated. B) adopting policies that benefit consumers at the expense of the regulated firms. C) adopting policies that benefit no one. D) satisfying neither producers nor consumers, but striving to control as much as possible.