The open economy effect and interest rate effect are two of the reasons why
A. capital formation does not contribute to economic growth in poor countries.
B. higher price levels increase long-run aggregate supply.
C. growth of the labor force does not contribute to economic growth in wealthy countries.
D. the aggregate demand curve slopes downward.
Answer: D
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Positive economics seeks to:
A. determine what government economic policies are best. B. objectively explain how societies value different economic outcomes. C. determine the most appropriate economic goals for society. D. objectively explain how the economy functions.
Supply is very elastic when
A. The quantity demanded causes the quantity supplied to increase. B. The quantity supplied does not change much when price rises. C. The quantity supply does not respond to an increase in price. D. The quantity supplied has a large increase in response to an increase in price.
Billy is considering the purchase of a rental house. The house costs $240,000 and it will generate annual revenues of $15,000 and annual expenses of $3,000. What is the internal rate of return of this investment?
A) 5% B) 7.5% C) 3.75% D) 24%
If planned investment increases, equilibrium will be restored only when saving has increased by exactly the amount of the initial increase in planned investment, assuming there is no government or foreign sector.
Answer the following statement true (T) or false (F)