An increase in real net exports leads to an increase in real GDP. Further
A) real consumption spending increases while real investment spending decreases.
B) real government spending decreases to offset the increase in real net exports.
C) real consumption spending and real saving increase.
D) real consumption spending increases but real saving does not change.
C
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When will the substitution effect of a wage increase cause a fall in the amount of labor employed?
a. Always. b. When labor is not a regressive factor. c. When labor and capital are substitutes in production. d. When labor and capital are complements in production.
An increase in the supply of the product implies:
a. producers will now charge a higher price for a given quantity of output. b. the supply curve will shift to the left. c. some producers are dropping out of this market. d. producers will now charge a lower price for a given quantity of output. e. the price of this product has increased.
The situation in which the marginal product of labor is greater than zero and declining as more labor is hired is called the law of:
a. diminishing returns. b. negative response. c. inverse return to labor. d. demand.
Given the following information about AAA bank:
What is the reserve ratio?
A. 50 percent B. 40 percent C. 20 percent D. 10 percent