Potential GDP increased from 4.7 trillion to 16.6 trillion between 1970 and 2013 resulting in economic growth. Also, during this time ________ occurred because ________
A) inflation; aggregate demand decreased by more than potential GDP
B) stagflation; aggregate demand increased by more than potential GDP
C) deflation; aggregate demand increased by more than potential GDP
D) inflation; aggregate demand increased by more than potential GDP
E) inflation; aggregate demand increased by less than potential GDP
D
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If inflation is positive and is perfectly anticipated
A) those that lend money lose. B) no one in the economy loses. C) those that borrow money lose. D) those that hold paper money lose.
You've read about a soldier who, in the heat of battle, willingly sacrifices his or her life to save the lives of fellow soldiers. How can you best explain such a sacrifice in terms of utility analysis? a. The soldier makes an interpersonal comparison of utility and decides that the life of the soldier saved is less valuable than his own
b. The soldier makes an interpersonal comparison of utility and decides that the probability of getting killed is less than the probability of not getting killed, but waswrong. c. The soldier makes an interpersonal comparison of utility and decides that the probability of getting killed is less than the probability of not getting killed, and wasright, but the probability of getting killed was still greater than zero. d. In the heat of battle, the soldier may place an incredibly high value on saving a comrade's life, even higher than his own. e. In the heat of battle, a soldier doesn't think rationally.
Estimations calculated using the rule of 70:
A. are simple to use, but make it difficult to see the relationship between growth rate and income over time. B. make it easier to appreciate how big differences in growth rates are needed to create any real difference in income over time. C. make it easier to appreciate how small differences in growth rates can add up to huge differences in income over time. D. are simple to use, but give estimates that have been proven wrong in recent decades.
Explain each of the determinants of the present value of expected profits from a buying a new machine
What will be an ideal response?