As a result of a decline in the expected rate of return on investment, GDP would not have to fall if the government __________ taxes or __________ government spending
A) increased; increased
B) increased; decreased
C) decreased; increased
D) decreased; decreased
A
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Quantity supplied increases when the price of a good increases because
A. producers find it more profitable to make the item. B. potential buyers “drop out” of the market, so the good becomes more abundant. C. as demand decreases with a high price, surpluses appear. D. All of these responses are correct.
Trade can occur only if property rights are
A. not enforced. C. legally binding. D. not transferable.
The demand for cars in a certain country is given by: D = 20,000 - P, where P is the price of a car. Supply by domestic car producers is: S = 5,000 + 0.5P. If this economy opens to trade while the world price of a car is $6,000, and the government imposes a quota allowing 3,000 cars to be imported, then domestic equilibrium quantity of cars will be ________.
A. 12,000 B. 6,000 C. 10,000 D. 8,000
A disadvantage of chain-weighting is that
A. it causes output growth to slow. B. past growth rates of real GDP change whenever the base year changes. C. the components of real GDP don't sum to real GDP. D. past inflation rates change whenever the base year changes.