If what producers intend to produce for consumption is precisely what consumers intend to consume, then the economy will be in equilibrium
Indicate whether the statement is true or false
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Long-term increases in productivity that have increased the demand for labor, and raised real wages, have resulted primarily from ________ and ________.
A. a modernized capital stock; an increased labor supply B. a modernized capital stock; skill-biased technological change C. technological progress; a modernized capital stock D. technological progress; an increased labor supply
Suppose marginal propensity to consume (MPC) is 0.7 and there is a $1,000 increase in autonomous consumption. Given this information, real GDP will increase by
A) $3,333.
B) $1,429.
C) $1,000.
D) $700.
If there are no barriers to entry into an industry
A) short-run economic profits must be zero. B) long-run economic profits must be zero. C) both short-run and long-run economic profits must be zero. D) short-run and long-run profits must still be positive.
Consumer surplus is the
a. amount of a good consumers get without paying anything. b. amount a consumer pays minus the amount the consumer is willing to pay. c. amount a consumer is willing to pay minus the amount the consumer actually pays. d. value of a good to a consumer.