Total output and total income in the circular flow model
A) are measures of the economy's level of savings.
B) include only intermediate goods.
C) are equal to each other.
D) are related because national income is less than national product.
C
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Which of the following experiments will yield observations that would allow one to calculate the marginal physical product of labor?
A. Increase the number of lumberjacks with chain saws and observe the change in output of cut trees B. Increase the number of workers on an assembly line and record the change in output C. Increase the number of data entry operators and computers and calculate the extra output. D. Check the number of workers before and after a given time period.
Everything else equal, if the dollar depreciates against the peso:
A) U.S. exports and imports will both decrease. B) the U.S. will import more and export less. C) U.S. exports and imports will both increase. D) the U.S. will export more and import less.
Which of the following statements about junk bonds is false?
A) Given the likelihood of default, it is never profitable to purchase junk bonds. B) They pay higher interest rates than investment grade bonds due to higher perceived risk. C) Prior to the 1970s, corporations were unable to issue junk bonds. D) A popular measure of junk bond yields reached a record low in 2012.
When the rate of appreciation of the nominal exchange rate equals the foreign inflation rate minus the domestic inflation rate, we say there is
A. purchasing power parity. B. an aggregate supply shock. C. a Phillips curve. D. relative purchasing power parity.