Investment spending might be larger when GDP is higher. Such added investment as GDP rises is called
A. mutual investment.
B. induced investment.
C. positive investment.
D. net investment.
Answer: B
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The exchange rate for the Mexican peso changes from $1 = 5 pesos to $1 = 6 pesos. This change will lead to ________.
A. Mexican goods becoming more expensive for Americans B. U.S. goods becoming less expensive for Mexicans C. an increase in Mexican imports from the U.S D. a decrease in U.S. exports to Mexico
Suppose that a firm uses both labor (L) and capital (K) as inputs. The firm's long-run production function is Q = F(L,K) = 5?L?K. If the firm has 100 units of capital, what is its short-run production function?
A. Q = F(K) = 50?K B. Q = F(L) = 500?L C. Q = F(L,K) = 50?L?K D. Q = F(L) = 50?L
The short-run Phillips curve shows the combinations of
a. unemployment and inflation that arise in the short run as aggregate demand shifts the economy along the short-run aggregate supply curve. b. unemployment and inflation that arise in the short run as short-run aggregate supply shifts the economy along the aggregate demand curve. c. real GDP and the price level that arise in the short run as short-run aggregate supply shifts the economy along the aggregate demand curve. d. None of the above is correct.
A hypothesis that has been tested extensively without being rejected and has won widespread acceptance is a:
A) model. B) constant. C) variable. D) theory.