Suppose that the government decreases its purchases of goods and services. Within the AD-AS model, the result will be ________ in real GDP and ________ in the price level.
A) a decrease; a decrease B) an increase; a decrease
C) a decrease; an increase D) an increase; an increase
A) a decrease; a decrease
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The law of small numbers describes:
A) the tendency for people to overstate the probability associated with rare events. B) the ability to correctly estimate the expected outcome from a small number of events. C) the higher probability that small numbers (like 1, 2, and 3 ) occur in random samples relative to large number (like 8 or 9 ). D) the improved accuracy of averages to estimate relatively small numbers (on the order of 1 or 10 ) than relatively large numbers (on the order of 1,000 or 10,000 ).
If sales in an industry decline,
a. demand for additional labor also declines. b. demand for additional labor increases. c. demand for additional labor stays the same. d. the unemployment rate definitely falls.
Which nation listed below is successfully transitioning from a planned economy to a hybrid market economy?
a. People's Republic of China. b. Japan. c. United Kingdom. d. United States.
In monopolistically competitive markets, free entry and exit suggests that
a. the market structure will eventually be characterized by perfect competition in the long run. b. all firms earn zero economic profits in the long run. c. some firms will be able to earn economic profits in the long run. d. some firms will be forced to incur economic losses in the long run.