What is the main reason for changes in GDP in the short run?
What will be an ideal response?
The main reason for changes in GDP in the short run is changes in the level of aggregate expenditure.
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When you golf you receive 18 units of pleasure from the first hole and on each hole thereafter your pleasure drops by one unit so that the 17th hole gives you 17 units of pleasure etc. If you play 5 holes and the rain hits so that you quit playing, what is the total pleasure, the average pleasure and the marginal pleasure experienced at the last hole played? Answer this with numerical answers and then graph the story.
What will be an ideal response?
Student absenteeism is a problem facing education in the developing world.
Answer the following statement true (T) or false (F)
The above table gives real GDP and the aggregate expenditure schedule. When real GDP is $15 billion, the amount of unplanned investment is
A) $29.25 billion. B) $14.25 billion. C) $15 billion. D) $0.75 billion. E) unknown.
Based on the above table, if the current price level is 100 and the unemployment rate is 4 percent, then the
A) expected inflation rate is 8 percent. B) inflation rate is 2.8 percent. C) expected inflation rate is 2.8 percent. D) inflation rate is 8 percent. E) inflation rate is 108 percent.