If the multiplier is 3, equilibrium real GDP is $1,000 billion, and investment is $400 billion, what will happen if investment decreases to $380 billion? Real GDP will:
a. increase to $1,020 billion.
b. increase to $1,060 billion.
c. decrease to $980 billion.
d. decrease to $940 billion.
e. decrease to $970 billion.
d
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Newsgroup Markets
Visit one of the following newsgroups: (Newsgroups provide lists of messages on a particular topic. Google provides a searchable interface for these newsgroups.)
- rec.antiques.marketplace
- rec.audio.marketplace
- rec.music.makers.marketplace
Questions:
- Do participants in such lists receive gains from trade? How?
- Does the existence of internet newsgroups such as these allow some individuals to gain from trade that might not otherwise occur? Explain.
Which of the following statements captures the meaning of transitivity of preferences?
a. If A is preferred to B, then B is less preferred than A. b. If A is preferred to B, and B is preferred to C, then A is preferred to C. c. If A is preferred to B and B is preferred to C, then the preference for A over B is stronger than the preference for B over C. d. If A is preferred to C, then there exists B such that A is preferred to B and C is preferred to A.
What does activity-based costing do for organizations?
a. Gives accurate view of the costs of service b. Enables companies to build individual customer P&L statements c. Creates a synergy between customers and suppliers d. Develops a history of transactions for the customer e. Both A and B
Which of the following factors is not a typical cause of changes in land rent?
A. Demand for land B. Supply of land C. Prices of the products produced from the land D. Prices of other resources employed along with land