Suppose the U.S. GDP growth rate is slower relative to other countries' GDP growth rates. This will
A) move the economy up along a stationary aggregate demand curve.
B) shift the aggregate demand curve to the left.
C) shift the aggregate demand curve to the right.
D) move the economy down along a stationary aggregate demand curve.
C
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In perfect competition, marginal revenue always equals
A. total revenue. B. price. C. average cost. D. marginal fixed cost.
Assume that the central bank increases the reserve requirement. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to real GDP and the nominal value of the domestic currency in the context of the Three-Sector-Model?
a. Real GDP rises, and nominal value of the domestic currency falls. b. Real GDP falls, and nominal value of the domestic currency rises. c. Real GDP rises, and nominal value of the domestic currency remains the same. d. Real GDP rises, and nominal value of the domestic currency rises. e. There is not enough information to determine what happens to these two macroeconomic variables.
Which statement is true?
A. Entrepreneurial ability is considered a passive resource. B. All entrepreneurs are inventors. C. The entrepreneur has been the central figure in the long economic success in the U.S. D. The basic payment made to the owners of capital is rent.
Which of the following will increase interest rates in the short run?
A. An decrease in reserve requirements B. Open-market sales by the Fed C. A decrease in real GDP D. A decrease in the price level