An increasing cost industry is one in which per unit cost increases as output expands in the long run
a. True
b. False
A
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The investment schedule shows the
A. amounts business firms collectively intend to invest at each possible level of real GDP. B. positive relationship between the expected rate of return and the quantity of investment demanded. C. rate of interest that business firms must pay when they make investments in capital goods. D. inverse relationship between the expected rate of return and the quantity of investment demanded.
Because ________ in the government budget deficit increase the real interest rate, budget deficits can ________ firm investment
A) decreases; increase B) increases; decrease C) decreases; decrease D) increases; increase
When the economy suffers a temporary negative supply shock and the monetary policy makers try to stabilize economic activity in the short run, then
A) aggregate demand curve shifts rightward. B) output will be at its potential. C) inflation rate will be higher. D) all of the above. E) both A and B.
The formula for nominal GDP is
a. Nominal GDP = Real GDP + GDP Deflator. b. Nominal GDP = Real GDP – GDP Deflator. c. Nominal GDP = GDP Deflator / Real GDP. d. Nominal GDP = GDP Deflator x Real GDP.