If an economy spends 90 percent of any increase in real GDP, then an increase in investment of $1 billion would result ultimately in an increase in real GDP of:
a. $0.
b. $0.9 billion.
c. $1.0 billion.
d. $10 billion.
d
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An advance in technology which increases labor productivity will shift the:
a. labor demand curve to the left. b. MFC curve to the left. c. MP curve downward. d. labor demand curve to the right. e. product demand to the right.
The public debt in the United States is the total value of government securities held by
a. foreign governments b. private individuals c. businesses d. everyone holding any part of the debt e. itself
Firms in a perfectly contestable market will be forced to operate as efficiently as possible and to charge prices as low as long-run financial survival permits. Why?
What will be an ideal response?
Which of the following is consistent with moving from a shortage to equilibrium in the market for foreign currency exchange?
a. the exchange rate falls so foreign residents want to buy more U.S. goods and services b. the exchange rate falls so foreign residents want to buy fewer U.S. goods and services c. the exchange rate rises so foreign residents want to buy more U.S. goods and services d. the exchange rate rises so foreign residents want to buy fewer U.S. goods and services