Equilibrium in a competitive market results in the greatest amount of economic surplus from the production of a good or service
Indicate whether the statement is true or false
TRUE
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The total amount spent on new capital goods is called
A) financial capital. B) depreciation. C) net investment. D) wealth. E) gross investment.
"When the balance of payments sums to zero is the only situation in which there is an equilibrium." Do you agree or disagree? Why?
What will be an ideal response?
________ cause foreign exchange to leave the country, and thus they are registered as a ________ in the balance of payments.
A. Exports; debit B. Exports; credit C. Imports; credit D. Imports; debit
Refer to the diagram. Assume that the natural rate of unemployment is 5 percent and that the economy is initially operating at point a, where the expected and actual rates of inflation are each 6 percent. In the long run, the decline in the actual rate of inflation from 6 percent to 4 percent will:
A. reduce the unemployment rate.
B. reduce corporate profits in real terms.
C. have no effect on the unemployment rate.
D. reduce real domestic output.