Actual output can exceed the economy's potential both in the short run and the long run
a. True
b. False
Indicate whether the statement is true or false
False
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Suppose that John allocates $10,000 of his disposable income for necessities. Any additional income beyond that is both spent and saved. Assume he has a disposable annual income of $50,000 and an MPC=0.8. Based on this information the amount of money John should save would be:
A. $10,000. B. $40,000. C. $12,000. D. $8,000.
Which country was among the lowest ranking by the World Bank for effective protection of property rights and rule-based governance?
a. North Korea b. Cuba c. Afghanistan d. Iraq
A defining characteristic of an oligopoly is:
A. barriers to entry prevent newcomers to such an industry. B. easy entry and exit prevent long-run profits from being possible. C. firms in the industry know they are competing with a few large firms with market power. D. all firms sell a standardized product.
Foreign aid:
A. provided by developed countries to developing countries represents about 10 percent of the GDP of developed countries. B. is an important source of funding for investment in most developing countries. C. does not contribute much to domestic investment in most developing countries. D. is largely wasted in most developing countries because it comes with no strings attached.