Under a favorable business environment and if the economic outlook of the future looked promising ________
A) firms might spend more for any given inflation rate
B) planned investment might increase leading to a higher equilibrium level of output
C) the aggregate demand curve would likely shift to the right
D) all of the above
E) none of the above
D
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The exchange rate between currencies depends on
A) the interest rate that can be earned on deposits of those currencies. B) the interest rate that can be earned on deposits of those currencies and the expected future exchange rate. C) the expected future exchange rate. D) national output. E) the interest rate that can be earned on deposits of those countries and the national output.
When we compare PAE and actual output (Y) the macroeconomic variable we generally use to directly assess their equivalence is:
A. capital expenditure. B. inventories. C. unemployment. D. interest rates.
The statement in a newspaper that "consumer prices rose last month by 1 percent, and if this trend continues, the annual rate of inflation will be 12 percent for the year" is an example of:
a. The fallacy of composition b. Loaded terminology c. A positive economic statement d. A normative economic statement
For a linear production function, q = f(L,K) = 4L + 2K, what is the short-run production function given that capital is fixed at = 50?
A) q = 4L + 100 B) q = 4L + 50 C) q = 4L D) q = 104