Suppose real GDP is $14 trillion and potential real GDP is $14.4 trillion. An increase in government purchases of $400 billion would cause real GDP to ________ potential real GDP (assuming a constant price level)
A) equal
B) be less than
C) be more than
D) There is insufficient information given here to draw a conclusion.
Answer: C
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According to cost-benefit analysis, where safety is concerned
A) it is possible to not be safe enough. B) it is possible to be too safe. C) it is possible to be just safe enough. D) All of the above are possible.
Why would a company be more enthusiastic in providing more training to its workers during an economic downturn than during an economic boom (assuming that they do not layoff their workers and can keep them when the economy recovers)?
What will be an ideal response?
Refer to Scenario 1-2. Had the firm not produced and sold the last 300 hats, would its profit be higher or lower, and by how much?
A) Its profit will be $1,000 lower. B) Its profit will be $100 lower. C) Its profit will be $1,100 higher. D) Its profit will be $100 higher.
Economics is as much art as it is science
a. True b. False