Giving up consumption today for consumption tomorrow accelerates economic growth by
A) having the economy produce no consumer goods.
B) increasing saving out of disposable income.
C) increasing the expected rate of inflation.
D) rapid expansion of the money supply.
Ans: B) increasing saving out of disposable income.
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In the Classical system, the interest rate is determined by all of the following except
A) the thriftiness of the public. B) the money supply. C) the productivity of capital. D) investment.
The aggregate demand curve shows
A) a direct relationship between changes in the price level and changes in real GDP. B) real GDP does not change as the price level changes. C) an inverse relationship between the price level and real GDP. D) an inverse relationship between changes in the price level and changes in nominal GDP.
The marginal revenue product of labor equals
a. MP/wage b. change in total revenue/change in units of labor c. change in total revenue times the change in units of labor d. P/MP e. MP ? wage
A sign that Country A is under pressure to appreciate its currency is its:
a. Current account is in surplus. b. Reserves account is in surplus (i.e., positive). c. Overall balance is in deficit. d. Overall balance is in surplus. e. All of the above.