At macroeconomic equilibrium,
a. total investment equals total inventories.
b. total spending equals total production.
c. total consumption equals total production.
d. total taxes equal total transfers.
b. total spending equals total production.
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Actuarily fair insurance reduces risk without changing the expected value of a gamble.
Answer the following statement true (T) or false (F)
The aggregate production function shows that an economy increases its real GDP in the short run by
A) developing new technologies. B) increasing its physical capital stock. C) using more labor. D) exploring for new deposits of natural resources.
Some early forms of money, like commodity money, did not survive because
A) they were outlawed. B) quality control was difficult. C) people disagreed on which good to use. D) paper quality was poor.
At equilibrium, quantity demanded equals quantity supplied.
Answer the following statement true (T) or false (F)