A permanent reduction in planned real investment spending leads to
A) a more than proportional increase in real GDP.
B) a more than proportional decrease in real GDP.
C) a less than proportional decrease in real GDP.
D) a proportional decrease in real GDP.
B
You might also like to view...
Refer to the Article Summary. In Mexico, many educated workers are leaving the country, but in some countries, less-educated workers are the primary workers who leave
Should an outflow of workers leave a country with a smaller but more productive workforce and the capital per hour worked does not change, there would be ________ the per-worker production function in that country. A) a movement down B) a movement up C) an upward shift of D) a downward shift of
For a consumer bound by the collateral constraint, a reduction in the price of the collateral leads to
A) nothing. B) an increase in current consumption and a decrease in future consumption. C) a decrease in current consumption and no change in future consumption. D) a decrease in current and future consumption.
The firm's average cost curve is the result of cost minimization in the use of fixed inputs
a. True b. False Indicate whether the statement is true or false
What is the most probable reason why garbage collectors have higher wages than bookkeepers?
a. Employment discrimination b. A high unionization rate for bookkeepers c. A higher educational requirement for garbage collectors than bookkeepers d. The nonmonetary attractiveness of garbage collection causes fewer people to want to be garbage collectors.