A positive statement i. makes a statement about how the world operates. ii. is a true statement. iii. can be tested against the facts
A) i and ii
B) i and iii
C) ii and iii
D) i, ii and iii
E) i only
B
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Some competitive firms are willing to operate at a loss in the short run because their revenues are at least able to cover their variable costs
a. True b. False Indicate whether the statement is true or false
When taxes on the return to capital in a given economy are reduced, it causes firms to employ __________ capital goods. In terms of the production function (graphed with labor on the horizontal axis and Real GDP on the vertical axis), this then causes ____________________ which makes the LRAS curve shift ____________ resulting in ______________________
A) less; the production function to shift downward; leftward; a shrinking economy B) more; the production function to shift upward; rightward; economic growth C) more; a movement up along a given production function; rightward; economic growth D) more; a movement down along a given production function; leftward; a shrinking economy
Exhibit 5-6Use the table below to answer the following question(s). Nominal GDP GDP Year(billions) deflator Year 1 600 100.0 Year 21,000 133.3 Refer to Exhibit 5-6. Between Year 1 and Year 2, the general level of prices increased by approximately:
A. 16.7 percent. B. 33.3 percent. C. 66.7 percent. D. 133.3 percent.
The wealth effect is another term for the
A. real-balance effect. B. indirect effect. C. interest rate effect. D. substitution effect.