If real GDP is greater than planned aggregate spending:
A. real GDP will fall.
B. unplanned inventory investment is negative.
C. real GDP will rise.
D. the economy is in equilibrium.
A. real GDP will fall.
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A restaurant buys fish to offer as a daily menu special. The purchase of the fish by the restaurant is
A) an intermediate good. B) part of net exports if the fish was caught beyond the U.S. border. C) an investment. D) an example of government expenditures on goods and services. E) a consumption expenditure.
Suppose the Christmas trees market is perfectly competitive. A business owner is currently suffering from a loss of $1,000, the cost of producing and selling an additional Christmas tree is $20, and the current market price is $25. The owner
A) should sell more trees. B) should shut down his business now. C) should advertise in the market. D) is already minimizing his loss.
Which of the following is true of efficiency wages? a. It encourages workers to enroll in training programs. b. It creates less worker turnover
c. It reduces the marginal productivity of workers. d. It increases workers' demand for leisure.
There is no way that externalities can be corrected.
Answer the following statement true (T) or false (F)