When the interest rate is low
a. much capital is demanded and few resources are available for current consumption.
b. much capital is demanded and many resources are available for current consumption.
c. little capital is demanded and few resources are available for current consumption.
d. little capital is demanded and many resources are available for current consumption.
a. much capital is demanded and few resources are available for current consumption.
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Starting from long-run equilibrium, a large decrease in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; lower; potential B. expansionary; higher; potential C. recessionary; lower; potential D. recessionary; lower; lower
A competitive employer should hire additional labor as long as
A. the MRP exceeds the wage rate. B. average product exceeds MP. C. the wage rate is less than MP. D. MC exceeds MR.
What is the chain-weighted price index for GDP in the base year?
A) 0 B) 1 C) 100 D) The answer depends on the price index for the current year.
Economic growth is defined as
A) an increase in the nation's population. B) a sustained expansion of production possibilities. C) an increase in the wage rate. D) a decrease in the rate of inflation. E) an increase in employment.