The clearest sign of economic growth is a(n)
a. increase in nominal GDP.
b. increase in real GDP.
c. decrease in nominal GDP.
d. increase in nominal GDP.
b
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Figure 9.1 shows three aggregate demand curves. A movement from point b to point c could be caused by a(n)
A) decrease in government spending. B) decrease in the price level. C) decrease in taxes. D) increase in the money supply.
In perfect competition, what is the relationship between the demand for the firm's output and the market demand?
What will be an ideal response?
Suppose that Freedonia has GDP equal to 2000 million, the capital stock is 1700 million, and the number of employees equals 70 million. The production function is Y = AK0.25N0.75. Total factor productivity of the economy is approximately equal to
A) 0.09. B) 2.61. C) 4.19. D) 12.87.
Speculators in the stock market
a. aggravate instability in the market. b. create shortages of certain stocks. c. smooth out fluctuations in the market. d. reduce the profits of firms that issued the stock.