If depreciation exceeds gross investment,
A. The difference between GDP and NDP is smaller than gross investment.
B. The nation's capital stock is decreasing.
C. The nations capital stock is increasing.
D. Net investment exceeds depreciation.
Answer: B
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Define and illustrate a principal-agent problem
Suppose a tax cut affects aggregate demand and aggregate supply. Which of the shifts raise real GDP?
a. both the shift of aggregate demand and the shift of aggregate supply b. the shift of aggregate demand, but not the shift of aggregate supply c. the shift of aggregate supply, but not the shift of aggregate demand d. neither the shift of aggregate demand nor the shift of aggregate supply
What percentage of Americans will find a new job within 14 weeks of being unemployed?
a. 27.8
b. 35.7
c. 63.5
d. 78.4
A firm that is operating at peak efficiency is
A. making a profit in the short run. B. taking a loss in the short run. C. operating at the minimum point of its ATC curve. D. taking a loss in the long run.