The production function shows that potential GDP increases when the
A) price level rises.
B) price level falls.
C) inflation rate falls.
D) quantity of labor employed increases.
E) the wage rate falls.
D
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Economic investment refers to ________.
A. buying a financial asset for a gain. B. selling a financial asset for a gain. C. making new additions to a firm's stock of capital. D. postponing purchases of goods and services.
Typically bond prices fall as interest rates rise
Indicate whether the statement is true or false
Dollar bills in the modern economy serve as money because
A) they can be redeemed for gold by the Federal Reserve. B) they are backed by the gold stored in Fort Knox. C) they have value as a commodity independent of their use as money. D) people have confidence that others will accept them as money.
The addition to total revenue resulting from one more unit of output is called marginal revenue.
Answer the following statement true (T) or false (F)