In the short-run Keynesian model, investment is:
a. autonomous in relation to the interest rate.
b. upward sloping in relation to the price level.
c. downward sloping in relation to disposable income.
d. autonomous in relation to real GDP.
d
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The main public policies targeted at achieving growth in high-income countries are _________ policies focused on investment, including investments in human capital, technology, and physical plant and equipment.
a. immigration b. taxation c. command d. fiscal
Suppose that a firm has only one variable input, labor, and firm output is zero when labor is zero. When the firm hires 6 workers it produces 90 units of output. Fixed cost of production are $6 and the variable cost per unit of labor is $10 . The marginal product of the seventh unit of labor is 4 . Given this information, what is the total cost of production when the firm hires 7 workers?
a. $66 b. $76 c. $906 d. $946
The CPI in the base year is always equal to 100
Indicate whether the statement is true or false
If allocating dorm rooms changes from allocation by lottery to allocation by the market:
A. the allocation problem is still an economic problem. B. it becomes a political problem but not an economic problem. C. it becomes a social problem but not an economic problem. D. it becomes an economic problem.