If national saving decreases
A) the sum of domestic investment and foreign investment must increase.
B) the sum of domestic investment and foreign investment must decrease.
C) foreign investment must increase to cover the loss.
D) the sum of domestic investment and net exports must increase.
B
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In the long run, the price level adjusts
A) to achieve money market equilibrium. B) so that the inflation rate equals the growth rate of real GDP. C) so that the inflation rate equals zero. D) so that the inflation rate is moderate. E) so that the real interest rate equals the nominal interest rate.
A regulated natural monopolist allowed to earn a "fair" rate of return would produce to the point at which
A) the price per unit equals the long-run average cost. B) the marginal revenue curve meets the long-run average cost curve. C) the marginal revenue curve meets the long-run marginal cost curve. D) the price per unit equals its marginal revenue.
If the economy is represented in the graph shown and is currently at point E1, what could be said about the state of the economy?
A. The unemployment rate is zero. B. There is higher unemployment than the natural rate. C. The unemployment rate is just about the natural rate. D. There is lower unemployment than the natural rate.
Farm subsidies
A. enable industrial nations to export much of their agricultural output at artificially low prices. B. in the world's richest nations amount to over $300 billion. C. make it more difficult for less developed nations to purchase capital equipment from U.S. manufacturers such as Caterpillar. D. All of the choices are true.