If aggregate production in the economy exceeds aggregate purchases
A. unintended inventory investment is positive.
B. inventories will be drawn down.
C. there is upward pressure on real GDP.
D. aggregate purchases will tend to increase until equilibrium is achieved.
A. unintended inventory investment is positive.
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Refer to the figure above. What is the total surplus after Barylia opens up to free trade?
A) $455 B) $800 C) $1,000 D) $1,200
Elasticities measure the response of one variable to random shocks from unknown factors
Indicate whether the statement is true or false
Externalities are commonly generated from
a. purely competitive retail industries. b. modern computer technologies. c. ordinary consumption and production activities. d. benefits from further pollution abatement, which are zero.
The marginal revenue that would be derived from producing a fourth unit of output is
A. $20.
B. $16.
C. $12.
D. $8.