If businesses become more pessimistic about the future, what fiscal policies could the government take to stabilize the economy?
Increase government expenditures and cut taxes.
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Which of the following causes an economy to move rightward along the aggregate production function?
A) A decrease in the capital stock B) An improvement in technology C) An increase in the productivity of workers D) An increase in the price level
If a German firm produces cars in the United States, that production should count towards
A) U.S. GDP. B) German GDP. C) U.S. GNP. D) both U.S. GNP and German GDP.
If a monopolist were to produce in the inelastic segment of its demand curve
A) total revenue would be at a maximum. B) total revenue would be at a minimum. C) the firm would maximize profits. D) a further drop in the price will change quantity demanded less than proportionately.
Expected values
A. are calculated as the average value. B. are calculated over all possible outcomes. C. are weighted by the probability of an even occurring. D. all of these answer options are correct.