A permanent increase in autonomous investment causes
A) a less than proportional increase in real Gross Domestic Product (GDP).
B) a more than proportional increase in real Gross Domestic Product (GDP).
C) an offsetting change in saving that leaves real Gross Domestic Product (GDP) at the same level.
D) a proportional increase in real Gross Domestic Product (GDP).
B
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If over a short time a large number of teenagers become old enough to find employment and a much smaller number of people retire, then productivity
a. and real GDP per person rise. b. rises but real GDP per person falls. c. falls but real GDP per person rises. d. and real GDP per person fall.
Average fixed cost
A. decreases as output increases. B. increases if marginal cost is increasing. C. increases if marginal cost is greater than average fixed cost. D. increases as output increases.
Table 5.2National Income Accounts (dollar figures are in billions)Expenditures for consumer goods and services$2,850Exports$300Government purchases of goods and services$810Social Security taxes$295Net investment$510Indirect business taxes$445Imports$450Gross investment$700Corporate income taxes$190Personal income taxes$875Corporate retained earnings$210Net foreign factor income$0Government transfer payments to households$780Net interest payments to households$20On the basis of Table 5.2, national income is
A. $3,785 billion. B. $4,020 billion. C. $3,595 billion. D. $2,475 billion.
Workers whose wages tend to adjust slowly include all of the following EXCEPT:
A. union workers. B. unskilled, low wage workers. C. those with long-term contracts. D. movie stars, professional athletes, and rock stars.