The multiplier becomes smaller as the economy moves farther away from full employment.
Answer the following statement true (T) or false (F)
False
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Capital is the
A. flow of new equipment that a firm acquires over the course of a year. B. amount of increase in a firm’s equipment over a year. C. amount of money that a firm has on hand at a given time. D. stock of plant, equipment, and other productive resources held by a firm.
The gross domestic product (GDP) concept accounts for society's valuation of the relative worth of goods and services by using a ________.
A. utility measure B. monetary measure C. measure of volume D. measure of physical weight
Last year the CPI was 177.1 and this year the CPI was 180.9. What is the inflation rate between these two years?
What will be an ideal response?
If a natural monopolist is unregulated, then
A) the monopoly will produce efficiently from society's point of view. B) the monopoly will produce inefficiently from society's point of view. C) the monopolist will be earning just a normal rate of return on investment. D) the monopolist will determine the profit maximizing quantity by equating marginal cost to the demand curve.