The economy represented in the graph above has
A) low capital mobility.
B) high capital mobility.
C) perfect capital mobility.
D) increasing capital mobility.
A
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If both the production of goods and services increase and prices rise, then the change in nominal GDP
A) definitely understates the change in production. B) definitely accurately reflect the change in production. C) definitely overstates the change in production. D) either understates or might accurately reflect the change in production. E) More information is needed to determine how the change in nominal GDP compares to the change in production.
If the price of a product is expected to increase in the future, the supply today will increase
Indicate whether the statement is true or false
Refer to Table 16-2. How many tubes of toothpaste will Neem sell in West Fall and at what price?
A) Q = 2 units; P = $4.50 B) Q = 3 units; P = $4 C) Q = 5 units; P = $3 D) Q = 4 units; P = $3.50
A structural budget deficit
A) appeared during the Vietnam War era from 1966-68. B) appeared after 1982 due to tax cuts and spending increases. C) peaked at 5 percent of GDP in mid-1986 and had become a structural surplus by 1997. D) all of the above.