A private closed economy will expand when:
A. actual GDP is less than potential GDP.
B. unplanned decreases in inventories occur.
C. aggregate expenditures are less than GDP.
D. unplanned increases in inventories occur.
B. unplanned decreases in inventories occur.
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Which of the following does the long-run Phillips curve tell us?
a. That output can be below potential in the long run b. That the unemployment rate can take on any value in the long run c. That output can be maintained above potential in the long run d. That unemployment will return to the natural rate in the long run e. That the inflation rate cannot rise above 10 percent in the long run
When deciding whether to hire an additional worker, firms need only consider how the additional worker would affect
a. costs. b. revenues. c. output. d. profit.
To an economist, the term "needs"
A) refers only to material desires but not nonmaterial desires. B) is objectively undefinable. C) identifies the purchases of basic goods and services. D) refers to the purchase of goods by the poor.
Begin with the formula showing how households can divide their income. Then use this formula and the expenditure approach to GDP to show how investment is financed from three sources
What will be an ideal response?