In the short-run macro model, the change in inventories will
a. equal output minus aggregate expenditures
b. trigger a price change
c. equal investment minus depreciation
d. equal sales minus investment
e. be matched by an equal and opposite change in the subsequent period
A
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The self-correcting tendency of the economy means that falling inflation eventually eliminates:
A. exogenous spending. B. recessionary gaps. C. expansionary gaps. D. unemployment.
If a publishing company purchases faster computers to speed up word processing,
a. the marginal product of its editors will increase, which will shift the demand for editors to the right b. the marginal product of its editors will increase, which will shift the demand for editors to the left c. the wages of its editors will increase, which will shift the demand for editors to the right d. the wages of its editors will decrease, which will shift the demand for editors to the right e. the supply of editors will decrease
Which of the following is included in GDP computation according to the income method?
a. Consumption b. Profits c. Investment d. Government spending e. Imports
If a society is operating on its production possibilities frontier, and then decides to produce less health care,
a. its standard of living will fall b. its standard of living will improve c. some of its resources will become unemployed d. it will be able to produce more of some other good or service e. the opportunity cost of producing health care will rise