When firms reduce their target level of inventories, planned investment ________, and equilibrium expenditure and real GDP ________
A) rises; increase
B) falls; remains the same
C) rises; decrease
D) falls; decrease
E) falls; increase
D
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Differences in the stock of human capital between nations are an example of a(n):
A) proximate cause of prosperity. B) implicit cause of prosperity. C) explicit cause of prosperity. D) fundamental cause of prosperity.
The circular flow of income shows that GDP can be measured as the sum of wages, interest, rent, and profits received by households or total expenditures on goods and services by households, firms, government, and the rest of the world
Indicate whether the statement is true or false
Which of the following is the best description of the effects of an increase in the supply of bread?
a. Consumers will pay more for bread. b. Bread prices will fall, and bread sales will rise. c. A permanent surplus of bread will remain on the market. d. Bakers will have higher marginal costs.
In a union shop, prospective employees must be union members before they can be hired
Indicate whether the statement is true or false