Suppose that a new government is elected in Eurnesia. The new government takes steps toward improving the court system and reducing government corruption. The citizens of Eurnesia find these efforts credible and outsiders believe these changes will be effective and long lasting. These changes will probably
a. raise real GDP per person and productivity in Eurnesia.
b. raise real GDP per person but not productivity in Eurnesia.
c. raise productivity but not real GDP per person in Eurnesia.
d. raise neither productivity nor real GDP per person in Eurnesia.
a
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Without any restrictions in a perfectly competitive market, if there is a sudden rightward shift in the demand for a good:
A) sellers of the good will increase the supply of the good at the same price. B) sellers of the good will increase the quantity of the good supplied in the market. C) sellers of the good will decrease the supply of the good at the same price. D) sellers of the good will decrease the quantity supplied.
There are many firms in an oligopolistic market
Indicate whether the statement is true or false
If the government cut expenditures during an expansion
a. it would have to raise the tax rate b. it would tend to stabilize the economy c. both a and b d. neither a nor b
Using the concepts of planned and unplanned investment, explain why investment has such a strong influence on the economy.
What will be an ideal response?