If aggregate expenditure is more than GDP, then inventories fall and GDP rises
Indicate whether the statement is true or false
TRUE
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If the U.S. dollar and British pound have a flexible exchange rate, and the U.S. dollar changes so that one needs more dollars to buy one pound, the currency has
A) depreciated. B) appreciated. C) devalued. D) revalued.
The demand for hamburgers is estimated from this theoretical model:
Q = kPaIbAce, where Q = units per day, P = price per unit, A = advertising budget per month by sellers, I = per capita income of consumers, and e = a random error. In a recent study, one researcher estimated the log-linear form of this equation with regression analysis as: log Q = 2.5 - 0.33 log P + 0.15 log I + 0.2 log A. Explain what the coefficients of log P, log I, and log A reveal about this product.
The antebellum period was characterized by many changes in tariff rates. What best describes the effect of removing a tariff on foreign cotton textiles?
a. The total supply curve of textiles would shift back. b. The price of both foreign-made and domestic-made textiles would decrease. c. The price of foreign-made textiles would decrease and the price of domestic-made textiles would increase. d. The total (foreign and domestically produced. quantity of textiles purchased in the US would decrease. e. The real income of textile consumers would decrease.
Explain the theory of investment in human capital and the specific role that education plays in the theory