If a wealthy woman marries her butler, quits paying him and does not hire a new butler, then
A) GDP definitely decreases.
B) GDP definitely does not change.
C) GDP definitely increases.
D) GDP either does not change or increases.
E) There is not enough information given to reach a conclusion.
A
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All individuals and firms in a country must gain from trade in order for it to be beneficial to the nation
Indicate whether the statement is true or false
When the domestic currency strengthens under a fixed exchange-rate system, this is called
A) a depreciation. B) an appreciation. C) a devaluation. D) a revaluation.
Assume that people experience a one-time 50 unit increase in their consumption (i.e. the intercept of the consumption function increases by 50). In this case
a. equilibrium income will rise by 50 units times the investment multiplier. b. equilibrium income will rise by 50 units. c. equilibrium income will rise by 50 units times the tax multiplier. d. equilibrium income will not change because this increase is temporary.
With full information any contract will lead to production efficiency
Indicate whether the statement is true or false