If firms find that consumers are purchasing less than expected, which of the following would you expect?
A) The economy will adjust to macroeconomic equilibrium as inventories rise, and production and employment rise.
B) Aggregate expenditure will likely be greater than GDP.
C) The economy will adjust to macroeconomic equilibrium as inventories fall, and production and employment rise.
D) Aggregate expenditure will likely be less than GDP.
D
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In the Solow model, if total saving exceeds depreciation,
A) gross investment is negative. B) real wages decrease. C) capital deepening stops. D) capital stock increases.
What are the four key functions of prices in the market system?
What will be an ideal response?
Which of the following statements best describes the best public policy solutions for international trade?
a. The best public policy solutions involve some degree of protectionism, while finding other ways for public policy to address the particular issues, eventually allowing the benefits of international trade to occur. b. The best public policy solutions typically do not involve protectionism but instead involve finding ways for public policy to address the particular issues, while limiting the benefits of international trade to occur. c. The best public policy solutions typically do not involve protectionism but instead involve finding ways for public policy to address the particular issues, while still allowing benefits of international trade to occur. d. The best public policy solutions require protectionism, in addition to finding ways for public policy to address the particular issues, while still allowing the benefits of international trade to occur.
One key difference between swaps and option contracts is:
A. options trade on organized exchanges and swaps do not. B. options transfer risk, swaps create risk. C. swaps are derivative agreements and options are not. D. swaps do not involve any risk and options do.