Marvin’s country has a very small amount of capital. If his country adds a single unit of capital, the result will be a relatively ______ in output.
a. large decrease
b. minor increase
c. large increase
d. minor decrease
c. large increase
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Aggregation involves adding together different products and services
a. True b. False Indicate whether the statement is true or false
When there is an expansionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; expand B. increase; raise; decline C. decline; lower; decline D. decline; raise; decline
Refer to the information provided in Figure 25.2 below to answer the question(s) that follow.
Figure 25.2Refer to Figure 25.2. Suppose money demand is currently at Point A. A decrease in the interest rate to 5%, ceteris paribus, will likely
A. increase the quantity of money demanded from $100 million to $200 million. B. increase the quantity of money demanded from $100 million to $150 million. C. decrease the quantity of money demanded from $200 million to $100 million. D. increase the quantity of money demanded from $150 million to $300 million.
In perfect competition, restrictions on entry into an industry
a. do not exist. b. apply to labor but not to capital. c. apply to capital but not to labor.