If an economy initially starts away from the steady state ________
A) output will gradually fall over time
B) the economy will converge to the steady state in the long-run
C) consumption spending must be greater than investment spending
D) consumption spending must rise
B
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When the price of NBA tickets is $25 each, 30,000 tickets are sold. After the price rises to $30 each, 20,000 tickets are sold. At the original price, the demand for NBA ticket is:
A. inelastic. B. elastic. C. perfectly elastic. D. unit elastic.
Susan likes to drink sodas. The ________ soda Susan drinks, the ________ of the last soda
A) more; higher the marginal benefit B) less; higher the opportunity cost C) less; lower the marginal benefit D) more; lower the marginal benefit
The greater the marginal propensity to consume in the economy, the smaller the spending multiplier
a. True b. False Indicate whether the statement is true or false
For a simple economy (no government, no foreign sector), the condition for equilibrium can be stated correctly as
a. saving equals actual investment. b. saving equals inventory accumulation. c. saving equals planned investment. d. inventory accumulation equals planned investment.