An increase in the amount of physical capital will cause
A) an increase in both aggregate demand and real GDP, but have no effect on the price level.
B) an increase in both aggregate supply and real GDP, but have no effect on the price level.
C) aggregate demand and aggregate supply to increase by the same amounts, causing real GDP to increase and the price level to remain constant.
D) an increase in both aggregate supply and real GDP and a reduction in the price level.
D
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Keeping in mind economists' definition of factors of production, which of the following is NOT a factor of production?
A) money B) low-skilled labor C) coal D) an engineer
If the current dollars/peso exchange rate is $0.10 per peso, so that 10 pesos buy you a dollar, then how many dollars do you need to buy something that costs 50 pesos?
a. $50 b. $5 c. $15 d. $0.50 e. $1.50
An MPC value of less than 1.0 indicates that as income increases consumption
A. also increases, and by more than the increase in income. B. will go in the opposite direction and decrease. C. also increases, though not as much as income. D. also increases, and at the same rate as the increase in income.
Gold is a major reserve asset that is currently used in most official reserve transactions.
Answer the following statement true (T) or false (F)