In one year, a firm increases its production by $9 million and increases sales by $8 million. All other things in the economy remaining the same, which of the following is true?
A) GDP increases by $8 million and inventory investment decreases by $1 million.
B) GDP increases by $9 million and inventory investment increases by $1 million.
C) Inventory investment decreases by $1 million.
D) GDP increases by $8 million and investment increases by $1 million.
E) GDP increases by $17 million.
B
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Explain whether this assertion is correct or incorrect.
The income elasticity of demand for jewelry is 2. Other things equal, a 10 percent increase in consumer income will:
A. decrease the quantity of jewelry purchased by 20 percent. B. increase the quantity of jewelry purchased by 20 percent. C. decrease the quantity of jewelry purchased by 10 percent. D. increase the quantity of jewelry purchased by 10 percent.
Which question is an example of a macroeconomic question?
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Indicate whether the statement is true or false