If initial equilibrium real Gross Domestic Product (GDP) is $400 billion, MPC = 0.9, and autonomous investment increases $40 billion, equilibrium real Gross Domestic Product (GDP) will be
A) $440 billion.
B) $360 billion.
C) $600 billion.
D) $800 billion.
D
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Contractionary fiscal policy can lead to a depreciation of the nation's currency
Indicate whether the statement is true or false
Steady-state consumption per worker is
A) larger in the short run than in the long run. B) less than steady-state investment per worker. C) less than steady-state saving per worker. D) steady-state production per worker minus steady state investment per worker.
In the early 2000s, Chinese officials indicted members of a forgery syndicate that sold several hundred diplomas to high school graduates who needed the diplomas to take employment tests. This situation, where having the certificate of knowledge is more important than the knowledge itself, is known as:
A. the brain drain. B. human capital. C. certification. D. credentialism.
The MR = MC profit maximization rule applies:
A. only to monopolies. B. only to purely competitive firms. C. only when the firm is a "price taker." D. to firms in all types of industries.