In economics, the term _______________ describes spending that pays for the production and accumulation of capital goods.
a. investment
b. capital
c. money
a. investment
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During 2010, a country reports that its price level fell and the money wage rate did not change. These changes led to
A) a lower real wage rate, lower profits, and a decrease in the quantity of real GDP supplied. B) a higher real wage rate, lower profits, and a decrease in the quantity of real GDP supplied. C) a higher real wage rate, higher profits, and an increase in the quantity of real GDP supplied. D) a lower real wage rate, higher profits, and an increase in the quantity of real GDP supplied. E) no change in the real wage rate and an increase in aggregate demand.
Refer to Figure 3-7. Assume that the graphs in this figure represent the demand and supply curves for tuna. Which panel best describes what happens in this market when there is a decrease in the productivity of commercial fishermen?
A) Panel (a) B) Panel (b) C) Panel (c) D) Panel (d)
The marginal propensity to consume (MPC) is the change in consumption divided by the change in disposable personal income
a. True b. False Indicate whether the statement is true or false
Cyclical unemployment is:
A. long-term and chronic unemployment that exists even when the economy is producing at a normal rate. B. the extra unemployment that occurs during periods of recession. C. short-term unemployment that is associated with the process of matching workers with jobs. D. the additional unemployment not captured in official statistics resulting from discouraged workers and involuntary part-time workers.