Within the circular flow model, the level of total resource income and total spending on output will be approximately equal.
Answer the following statements true (T) or false (F)
Ans: True.
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When net exports increase,
A. the expenditures schedule increases. B. the expenditures schedule decreases. C. there is a corresponding increase along the aggregate demand curve. D. there is a corresponding decrease along the aggregate demand curve.
The government's holdings of foreign currency is recorded in the
A) money account. B) current account. C) currency account. D) official settlements account. E) capital and financial account.
Over the past year, output grew 4%, capital grew 2%, and labor grew 1%. If the elasticities of output with respect to capital and labor are 0.3 and 0.7, respectively, how much did productivity grow?
A) 2.0% B) 2.7% C) 3.0% D) 3.3%
In a certain city, the local government regulates the destruction of historic buildings and provides tax breaks to owners of historic buildings who restore them. These government policies
a. reflect the fact that restored historic buildings convey a positive externality. b. reflect the fact that the destruction of historic buildings conveys a positive externality. c. are likely to worsen the market failure that is associated with historic buildings and the restoration of such buildings. d. are likely to decrease the well-being of society as a whole.