If the general level of prices is lower than business decision makers anticipated when they entered into long-term contracts for raw materials and other resources, which of the following is most likely to occur?
a. an economic boom
b. highly attractive profit margins
c. output less than the economy's long-run potential
d. a sharp increase in imports
C
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A constitutional balanced budget amendment would
A) require a majority vote of Congress to authorize spending increases. B) require that the federal government maintain a balanced operating budget only. C) require that federal expenditures equal revenues (excluding borrowing). D) divide the federal budget into a capital budget and an operating budget.
"Learning by doing" results in decreased average costs of production and is illustrated by a downward shift of the firm's long-run average cost curve
Indicate whether the statement is true or false
The president of a poor country has announced that he will implement the following measures that he claims are designed to increase growth: 1 . Reduce corruption in the legal system; 2 . Reduce reliance on market forces because they allocate goods and services in an unfair manner; 3 . Restrict investment in domestic industries by foreigners because they take some of the profits out of the
country; 4 . Encourage trade with neighboring countries; and 5 . Increase the fraction of GDP devoted to consumption. How many of these measures will have a positive effect on growth? a. 1 b. 2 c. 3 d. 4
Real wages have fallen in the U.S. since 1973 for which of the following reasons?
A. Productivity growth slowed down during this period. B. American factories were closing left and right as our relatively high-paying manufacturing jobs went to other countries. C. The decline in the percentage of better-paid, unionized workers in the United States. D. All of the choices are correct.