If MUx/Px exceeds MUy/Py, then a household can increase its utility by spending more on X and less on Y.
Answer the following statement true (T) or false (F)
True
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Suppose GDP is $4,000 billion and aggregate expenditure is $3,750 billion. Inventories will
a. increase by $250 billion b. increase by $375 billion c. increase by $400 billion d. decrease by $250 billion e. decrease by $375 billion
The United States is one of the most marketized economies in the world
a. True b. False Indicate whether the statement is true or false
Suppose a developing country is falling further behind the developed countries that it neighbors. As an economic consultant, you are called to look at its policies to recommend changes. If you saw all of the following on your visit, which of them could be an explanation for the slow growth in the economy?
A. You see that the roads, bridges, and ports are in terrible shape. B. You see that new companies require few licenses to move their exports. C. You see that the central bank does not pay attention to what the elected officials want. D. You see that literacy rates rival those of its developed neighbors.
Econometrics is the use of statistics to _____ economic models
a. quantify and test b. try to disprove c. avoid the use of d. create e. simulate