In reality, idle resources must exist in the economy in order for the multiplier process to lead to an increase in Real GDP
Indicate whether the statement is true or false
True
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The production possibilities frontier illustrates the
A) maximum combinations of goods and services that can be produced. B) resources the economy possess, but not its level of technology. C) goods and services that people want. D) limits to people's wants. E) amount of each good that people want to buy.
Workforce quality can be improved by
a. years of education. b. on-the-job training. c. workplace learning. d. all of the above.
Assume that the central bank increases the reserve requirement. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the GDP Price Index and current international transactions in the context of the Three-Sector-Model?
a. The GDP Price Index and current international transactions remain the same. b. The GDP Price Index falls, and current international transactions become more negative (or less positive). c. The GDP Price Index rises, and current international transactions becomes more negative (or less positive). d. The GDP Price Index rises, and current international transactions remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
The collection of statutes aimed at curbing monopoly power is called
a. the 14th amendment. b. the Clayton Act. c. the Sherman Act. d. antitrust law.