Consumption spending is $22 million, planned investment spending is $7 million, actual investment spending is $7 million, government purchases are $9 million, and net export spending is $3 million. the following is not true?
What will be an ideal response?
- aggregate expenditure is greater than GDP
- there was an unplanned change in inventories
- is very volatile and subject to fluctuations; follows a smooth trend
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Even if some people are hurt by international trade, the HO model predicts that free international trade improves the standard of living for the country as a whole
Indicate whether the statement is true or false
If managers minimize costs they have maximized profits
Indicate whether the statement is true or false
An economy is judged efficient if
a. it is good at producing what people want. b. it produces things that people may not want but in the least wasteful way. c. produces whatever people want in a way that may not be the least wasteful. d. it is a free-market economy and not a command market.
Dollar prices and relative prices are both nominal variables
a. True b. False Indicate whether the statement is true or false