Which of the following does NOT lead to an increase in potential GDP?
A) labor force grows
B) technological change takes place
C) new machinery and equipment are installed
D) aggregate expenditures increase
D
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In a partnership, the owners of the business and the business are ________, and in a sole proprietorship, the owner of the business and the business are ________
A) not separate legal entities; also not separate legal entities B) separate legal entities; also separate legal entities C) not separate legal entities; separate legal entities D) separate legal entities; not separate legal entities
Which of the following statements is used to justify protectionism?
A) Free trade leads to higher prices for imported goods. B) Trade restrictions are not necessary to protect new firms since they can gain experience and become more productive without protection. C) A country should not rely on other countries for goods that are critical to its national defense. D) Free trade increases employment by protecting domestic firms.
Which of the following describes world trade since 1950?
a. Tariffs have fallen, and trade has grown twice as fast as world output. b. Tariffs on goods have risen from 9% in 1950 to an average of 26%. c. Overregulation and rising tariffs have reduced world trade since 1950. d. Trade agreements have limited many trading partners to their own region.
In the late 1990s, Thailand, Malaysia, and Indonesia all experienced sharp declines in the value of their currencies; this resulted in economic instability and crisis. The collapse in the values of their currencies undermined their development by:
A. decreasing political instability. B. decreasing population growth. C. increasing corruption. D. reducing investment.