Are public goods excludable? Are they rival in consumption?
No, public goods are not excludable. No, they are not rival in consumption.
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Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________.
A. Rising; A B. Falling; A; C C. Falling; B: C D. Rising; A; C
In an open economy with a given level of real interest rates and risk, a decrease in real interest rates abroad will ________ capital inflows and ________ the equilibrium domestic real interest rate.
A. increase; decrease B. decrease; increase C. decrease; decrease D. increase; increase
Stable money and prices are a key source of economic growth because
a. they allow activist policymakers to fine tune the economy. b. uncertainty and instability in prices will attract investors and business decision makers. c. price instability increases capital formation. d. price stability reduces the risks that accompany investment and other long-term commitments.
Total output includes all of the following except:
A. Household consumption. B. Business investment. C. Imports. D. Government services.