If, at some level of output, total planned real expenditures are greater than real Gross Domestic Product (GDP)
A. real GDP will either fall or remain unchanged, depending on the MPC.
B. real GDP will fall.
C. real GDP remains unchanged.
D. unplanned inventories will decrease.
Answer: D
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In a macroeconomic model designed to explain why some countries grow faster than others, which of these variables is likely to be endogenous?
A) investment B) economic policies C) geographic size D) population E) none of the above
A payment of $10,000 is to be made in the future. The interest rate 3%. Is this payment worth more if it is paid in 5 years or 10 years? How much more is it worth?
Usually, price elasticities of supply are
A. considered short-run adjustments due to supply constraints. B. positive, because higher prices yield larger quantities supplied. C. an inverse relationship between price and quantity supplied. D. ordinarily a negative number based on the law of supply.
Which of the following is a valid counterargument to a call for higher tariffs "to save U.S. jobs"?
A. The need to protect U.S. workers from the dumping of foreign products B. Strategic trade policy calls for equal treatment of all trading nations so that they will have the same competitive conditions C. U.S. firms and workers must be protected from the ruinous competition of nations where wages for workers are low D. Imports may eliminate some U.S. jobs, but they create others, so they may have little or no effect on employment