If firms sell more output than expected, planned investment:
A. equals actual investment.
B. equals zero.
C. is greater than actual investment.
D. is less than actual investment.
Answer: C
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While constructing a price index, economists give greater weight to the items on which people spend less money
a. True b. False Indicate whether the statement is true or false
When inflation occurs
A. money gains in value. B. money loses value. C. the value of money is unaffected. D. the value of demand deposits falls but the value of currency is unaffected. E. inflation has nothing to do with money.
In the macroeconomic model of aggregate supply and aggregate demand, price is:
A. calculated as a weighted average of the prices of all goods and services. B. the measure of the value of all goods and services produced by the economy. C. represented by GDP. D. None of these is true.
When a firm creates an industry,
A. it is there forever. No other firm can enter. B. the firm's economic profit will stabilize. C. depending on the ease of entry, the firm's economic profit is likely to diminish. D. the firm's economic profit will rise because other firms will enter.