"Production cutbacks have been much greater than expected. Those cuts have weakened the industrial sector considerably." As a result, the US govt. lowered its estimate of 4th quarter growth in read GDP. The article suggests that:
a) planned expenditures exceeded real GDP
b) real GDP exceeded planned expenditures
c) the AE curve shifted upward
d) the AD curve shifted rightward
b) real GDP exceeded planned expenditures
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Using a broad definition, a firm would have a monopoly if
A) it produced a product that has no close substitutes. B) it does not have to collude with any other producer to earn an economic profit. C) it can make decisions regarding price and output without violating antitrust laws. D) there is no other firm selling a substitute for its product close enough that its economic profits are competed away in the long run.
Refer to Table 13-2. What is likely to happen to the product's price in the long run?
A) It will fall. B) It will remain constant. C) It will increase. D) This cannot be determined without information on its long-run demand curve.
Which of the following is correct concerning a risk-averse person?
a. She would not play games where the probability of winning and losing a dollar are the same. b. She might not buy health insurance if she thinks her risks are low. c. Her marginal utility of wealth decreases as her income increases. d. All of the above are correct.
An increase in the marginal cost arising from a more complex specialized investment environment will cause the optimal contract length to:
A. either increase or decrease. B. remain constant. C. increase. D. decrease.