In the short run,
a. spending depends on income and income depends on spending
b. spending depends on income, but income does not depend on spending
c. income depends on spending, but spending does not depend on income
d. spending and income are independent of one another
e. spending is the only determinant of how much income an economy will produce
A
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An increase in foreign investment in Brazil's mining industry will increase the capital stock in Brazil. Holding labor and total factor productivity constant, continued increases in the capital stock will lead to
A) larger and larger increases in real GDP. B) smaller and smaller increases in real GDP. C) larger and larger decreases in real GDP. D) small increases, followed by small decreases, in real GDP.
When demand is elastic, an increase in price causes the seller's total revenue to:
A. decrease. B. increase. C. fall to zero. D. remain the same.
Because of the slope(s) of the ________, we can say that a decrease in the price level leads to a higher level of real GDP demanded
A) aggregate demand curve B) short-run aggregate supply curve C) long-run aggregate supply curve D) short-run and long-run aggregate supply curves
Pizza at Home is a frozen pizza company that supplies several large grocery store chains. The managers of Pizza at Home are currently negotiating a four year contract with Saucy Pizza, a manufacturer of pizza sauce. Saucy Pizza will supply a specified quantity of canned tomato sauce to Pizza at Home over a four year period; however; Pizza at Home can ends its contract with Saucy Pizza at the end
of the first, second, or third years if Saucy Pizza does not supply quality tomato sauce. What can the manager of Pizza at Home do to avoid the end-game problem? A) Inform Saucy Pizza that Pizza at Home will nominate them for a supplier industry award if they provide quality tomato sauce in all four years. B) Pay Saucy Pizza in installments at the end of the first, second, and third years. C) Pay Saucy Pizza in equal installments at the end of each of the four years. D) Pay Saucy Pizza in full at the beginning of the first year.