An increase in capital stock will shift the production function
A. downward.
B. rightward.
C. upward.
D. outward.
Answer: C
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When there is an expansionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; expand B. increase; raise; decline C. decline; lower; decline D. decline; raise; decline
Ceteris paribus, as real GDP expected growth ________, investment spending ________
A) increases; decreases B) increases; increases C) decreases; increases D) changes; does not usually change
Approximately what percentage of total health care spending goes toward physicians' services?
a. One-tenth. b. One-fifth. c. One-fourth. d. One-third. e. One-half.
An increase in the rate of economic growth curve could be caused by all of the following except
A. a national tax that encourages all employers to provide more training and education for employees which leads to an across-the-board upgrade of the skill level of the nation's workforce. B. a movement along the production possibilities curve so that the society produces more consumer goods and less capital goods. C. an increase in immigration that increases the country's labor force by 20 percent. D. an increase in research and development spending for space technology that improves the quality of the nation's capital stock.