In the long-run...
What will be an ideal response?
real GDP is equal to potential GDP
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The formula for aggregate expenditure is
A) AE = C + I + depreciation - NX. B) AE = C + I + G. C) AE = C + I + G - NX. D) AE = C + I + G + NX.
Suppose that Captain Canada can produce 100 hockey sticks or 10 gallons of maple syrup in a typical work week, while Captain Germany can produce 90 hockey sticks or 10 gallons of maple syrup in a typical work week. From these numbers, we can conclude
A. Captain Canada has a comparative advantage in the production of hockey sticks. B. Captain Germany has a comparative advantage in the production of maple syrup. C. Captain Canada has an absolute advantage in the production of hockey sticks. D. All of the above conclusions are correct.
One of the eight big ideas underlying the study of economics is that government policies ______.
a. direct an economy like an “invisible hand” b. may help stabilize the economy c. generally do more harm than good d. have little impact in a market economy
A sequential game is one where:
A. players take turns making moves and/or decisions. B. players act together to achieve a common goal. C. there is never a winner if players act rationally. D. players make their moves and/or decisions at the same time.