If planned aggregate expenditure is below potential GDP and planned aggregate expenditure equals GDP, then
A) actual inventory investment will be less than planned inventory investment.
B) the economy is at full employment.
C) the economy is in a recession.
D) actual inventory investment will be greater than planned inventory investment.
C
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In the neoclassical growth model, the rate of technological process is:
a. 2 percent. b. 0 percent. c. exogenous and not explained. d. endogenous and explained by human capital accumulation.
If all firms in a monopolistically competitive market are incurring losses, then eventually:
a. the demand for the products in the market will increase. b. the supply of the products in the market will increase. c. the price of the products in general will decline. d. the cost of production will increase. e. the firms will exit until the existing ones just break even.
What are the advantages of a fractional reserve banking system compared to a system that requires 100 percent of deposits to be kept on reserve?
What is the name of the least amount that legally may be paid to most workers for an hour of work?
a. equilibrium price b. supply cost c. price floor d. minimum wage