If aggregate expenditures are less than real GDP, then:

a. both inventories and real GDP will decline.
b. inventories will decline but real GDP will increase.
c. inventories will increase and real GDP will decline.
d. both inventories and real GDP will increase.
e. inventories will increase but real GDP will remain unchanged.


c

Economics

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An official settlements account balance of -$5,000 means

A) official reserves of foreign currency increased by $5,000. B) official reserves of foreign currency decreased by $5,000. C) the country is exporting more than it is importing. D) the country is importing more than it is exporting.

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Describe the relationship between marginal productivity and average productivity. Use calculus or a graph to support your answer

What will be an ideal response?

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The concept of price elasticity is applied to changes in:

A. quantity demanded, but not quantity supplied. B. quantity supplied, but not quantity demanded. C. both quantities supplied and quantity demanded. D. neither quantity supplied nor quantity demanded.

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All profit-maximizing firms chose the level of output at which:

A. MR < P B. P = MC C. MR = P D. MR = MC

Economics