Suppose there has been an increase in investment. As a result, real GDP will ________ in the short run, and ________ in the long run
A) decrease; increase to its initial level B) increase; increase further
C) increase; decrease to its initial value D) decrease; decrease further
C
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Which of the following is a part of the potential work force of a country?
A) People on active duty in the military. B) Institutionalized people C) Civilian non-institutionalized people aged 16 years and above D) Children aged 15 and lower
iPods are less expensive in Canada than the United States, once the exchange rate is taken into account. This is an indication that
A) the nominal exchange rate is equal to one. B) purchasing power parity does not hold. C) the law of one price holds. D) the exchange rate is fixed.
An HVAC company is selling heating and cooling equipment. It has separate sales and marketing units. The marketing unit would want to
a. Price aggressively to ensure sales are made b. Price less aggressively to ensure that profitable sales are made c. Price at cost to maximize sales d. None of the above
Suppose the market for oranges is perfectly competitive and unregulated. Suppose also that the chemicals used to keep the oranges insect-free damage the environment by an estimated $1 per bushel of oranges. Suppose QD = 1000 - 100P and QS = -100 + 100P. If regulators limited production to 200 bushels, the deadweight loss relative to the option of setting the optimal tax would be would be
a. $0 b. $200 c. $500 d. $1000