When aggregate expenditure is more than GDP, which of the following is true?
A) Firms spent less on capital goods than they planned.
B) Households bought fewer new homes than they planned.
C) There was an unplanned decrease in inventories.
D) All of the above must be true when aggregate expenditure is more than GDP.
C
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In the short-run:
a. All costs are variable b. Some costs are fixed and some costs are variable c. There are no fixed inputs d. The firm is not constrained to vary output
In the prisoner's dilemma game, the sentence that each player receives depends on
a. neither strategy chosen b. only the strategy the player chooses c. only the strategy the other player chooses d. the strategy the player chooses and on the strategy the other player chooses e. None of the answers is correct.
Under what condition is the long-run market supply curve for a competitive market perfectly elastic?
Other things equal, a rise in interest rates can be expected to:
A. have no effect upon the quantity of investment. B. decrease the quantity of investment. C. increase the quantity of investment. D. increase equilibrium income.