Because the United States does not have a comparative advantage in producing clothing, a fall in world prices increases imports and ________ U.S. production. U.S. consumers ________ and U.S. producers ________
A) decreases; gain; gain
B) increases; gain; lose
C) increases; gain; gain
D) decreases; gain; lose
E) decreases; lose; lose
D
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If in the third quarter of 2016 total investment spending was $4,768 billion and depreciation was $3,292 billion, then net investment was equal to
A) $1,476 billion. B) $3,292 billion. C) $4,768 billion. D) $8,060 billion.
As the stock of capital grows, there will typically be ________ depreciation
A) less B) more C) the same amount of D) no
Assuming the economy is represented by the graph shown, if the government were to enact a partially successful expansionary fiscal policy, it would be most likely to move from equilibrium:
A. A to B.
B. B to A.
C. D to C.
D. D to B.
When you compare the effects of government spending on aggregate demand with the effects of taxes on aggregate demand, the effects of government spending are
a. smaller. b. larger. c. the same. d. impossible to predict.