In 1933, net private domestic investment was a minus $6.0 billion. This means that:
a) gross private domestic investment exceeded depreciation by $6.0 billion.
b) the economy was expanding in that year.
c) the production of 1933's GDP used up more capital goods than were produced in that year.
d) the economy produced no capital goods at all in 1933.
c) the production of 1933's GDP used up more capital goods than were produced in that year.
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The wage rate is the price of a unit of labor. What happens to the demand for labor if the wage rate increases?
A. It increases. B. It decreases. C. It does not change. D. Uncertain-economic theory has no answer to this question.
Jim has the following assets and liabilities:Credit card balance$2,000Cash$500Government bonds$2,000Checking$750Car loan balance$5,000Car$15,000 Which of the following actions would increase Jim's money demand by $200?
A. Jim pays $200 cash for a new lamp. B. Jim gets a $200 cash advance on his credit card and puts the proceeds in his checking account. C. Jim writes a check for $200 to pay down his credit card balance. D. Jim writes a check for $200 to pay down her car loan balance.
Given the cost function C(Y) = 6Y2, what is the marginal cost?
A. 12Y B. 6Y C. Y2 D. 3Y
When the economy entered a serious recession in 2008, the response of the U.S. government was to institute a $700 billion bailout plan, pursue other heavy deficit spending, and take on unusually large liabilities through bond and money market fund guarantees. This is an example of:
A. procyclical fiscal policy. B. fiscal policy that employs automatic stabilizers as the primary means of economic stabilization. C. sound finance as fiscal policy. D. functional finance and expansionary fiscal policy.