Refer to the above diagram. A shift in the production possibilities curve from AB to CD is most likely due to:
A. an increase in the spending of business and consumers.
B. an increase in government purchase of the economy's output.
C. an increase in the quantity and quality of labor resources.
D. the use of the economy's resources in an efficient way.
Answer: C
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You have to worry about perfect multicollinearity in the multiple regression model because
A) many economic variables are perfectly correlated. B) the OLS estimator is no longer BLUE. C) the OLS estimator cannot be computed in this situation. D) in real life, economic variables change together all the time.
Governmental rules that significantly promoted entrepreneurship first became prominent during the
a. Great Recession. b. Age of Enlightenment. c. Great Depression. d. Industrial Revolution.
The larger the marginal propensity to consume (MPC), the larger the percentage of disposable income that people consume rather than save, and the larger is the ultimate increase in real GDP from an initial increase in aggregate expenditure such as government spending
Indicate whether the statement is true or false
The interest rate that banks change one another on overnight loans is called the
What will be an ideal response?