Unemployment
a) falls when households save a larger fraction of their income.
b) moves in the opposite direction as real GDP.
c) rises during expansions.
d) decreases as production falls.
Ans: b) moves in the opposite direction as real GDP.
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Using the data in the above table, what is the real GDP for year 2020 (in billions of constant dollars)?
A. 9,250 B. 7,708 C. 8,950 D. 8,500
Equilibrium real GDP rises after the dollar strengthened. From this, we can conclude that
A) the increase in aggregate demand was greater than the decrease in aggregate supply. B) the decrease in aggregate demand was less than the increase in aggregate supply. C) the decrease in aggregate demand was more than the increase in aggregate supply. D) the increase in aggregate demand was less than the decrease in aggregate supply.
A monopolist firm may be more innovative than a competitive firm
a. True b. False Indicate whether the statement is true or false
Starting from long-run equilibrium, an increase in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. lower; higher D. higher; potential