Refer to the figure above. For an economy starting from the potential output a decrease in planned investment in the short run results in a
A. Recessionary output gap
B. Expansionary output gap
C. Increase in potential output
D. Decrease in potential output
Ans: A. Recessionary output gap
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The economic resource that organizes the use of other economic resources is called
A) labor. B) capital. C) entrepreneurship. D) land.
"The line distinguishing external from internal goals can be fuzzy." Discuss
What will be an ideal response?
If the long-run supply curve of a purely competitive industry slopes upward, this implies that the prices of relevant resources:
A. will fall as the industry expands. B. are constant as the industry expands. C. rise as the industry contracts. D. rise as the industry expands.
Money market mutual funds are hard to classify because they are used both for making transactions and for savings.
Answer the following statement true (T) or false (F)