If planned investment is perfectly unresponsive to changes in the interest rate, the planned investment schedule
A. is horizontal.
B. has a positive slope.
C. has a negative slope.
D. is vertical.
Answer: D
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The change in the quantity of goods and services that an hour's work can buy is measured by the
A) nominal wage. B) real wage. C) CPI. D) real interest rate. E) inflation rate.
The gains from trade that are possible when two countries have different opportunity costs for wheat and coffee are realized when
A) trade occurs and resources are reallocated within the two countries. B) the two countries continue to produce the same quantities of wheat and coffee. C) each country has an absolute advantage in one of the two commodities. D) the demand curves in both countries shift inward.
In the short run, the incidence of a sales tax is
a. wholly absorbed by the producer. b. shared between the consumer and the producer. c. deferred until the market is able to re-establish an equilibrium price. d. wholly absorbed by the consumer.
Per capita real GDP is obtained by dividing real GDP by the number of people active in the labor force
a. True b. False Indicate whether the statement is true or false