Along an IS curve as interest rates __________, income must be __________ so that saving, which is a positive function of income, can be higher to equal the higher level of investment
A) decline; lower
B) decline; higher
C) increase; lower
D) increase; higher
D
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Growth accounting is a method which measures the contributions to economic growth from what three factors?
What will be an ideal response?
If the 15th unit of output has a marginal cost of $29.50 and the average cost of producing 14 units of output is $30.23, what will happen to the average cost of production if the 15th unit is produced?
A) Average cost will fall. B) Average cost could increase or decrease depending on what happens to fixed cost. C) Average cost increases as more is produced. D) Average cost could increase or decrease depending on what happens to variable cost.
For individuals, the maximum fine for a Sherman Act violation is ________ million and the maximum prison sentence is ________ years.
A) $2; 10 B) $1; 10 C) $2; 5 D) $1; 5
If new substitutes for a good appear on the market, we would expect the price elasticity of demand for that product to increase
Indicate whether the statement is true or false