The influx of inexpensive, reliable cars from Japan in the 1980s forced domestic producers to
A. ask for greater import protections.
B. build larger, more luxurious vehicles.
C. improve the reliability and cost of their cars.
D. lobby for a closed economy.
Answer: C
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If autonomous investment increases by $200 billion and the marginal propensity to consume (MPC) is 0.5, then
A) real Gross Domestic Product (GDP) will rise by $100 billion. B) real Gross Domestic Product (GDP) will rise by $200 billion. C) real Gross Domestic Product (GDP) will rise by $400 billion. D) real Gross Domestic Product (GDP) will decrease by $100 billion.
Would a profit-maximizing firm continue to operate if the price in the market fell below its average cost of production in the short run?
What will be an ideal response?
Which of the following statements is (are) correct? According to the Feldstein-Horioka Saving Investment Puzzle
a. countries with relatively low saving to income ratios have relatively high investment to income ratios. b. there is no correlation between investment and saving in developed countries. c. countries with a high ratio of saving to income have high ratios of investment to income. d. Both a and b
In the equation of exchange, PQ represents: a. the dollar value of all final goods and services sold in a country in a given year. b. the price index times nominal GDP
c. real GDP. d. the price level times the velocity of money