The coordination problem in the centrally planned economies refers to the idea that:
A. planners had to direct required inputs to each enterprise.
B. the price level and the level of employment were inversely related.
C. the immediate effect of more investment was less consumption.
D. exports had to be equal to imports for a central plan to work.
Answer: A
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The economy is in equilibrium, TP = TE, and Real GDP is $4,000 billion. The MPC is 0.70, the multiplier is operative, and idle resources exist at each expenditure round. Government purchases fall by $17 billion. As a result, the TE curve shifts __________, inventory levels unexpectedly __________, business firms __________ the quantity of goods and services they produce, and Real GDP __________
by __________. A) downward; rise; decrease; falls; approximately $56.7 billion B) downward; fall; increase; falls; approximately $56.7 billion C) upward; rise; decrease; falls; $17 billion D) upward; fall; decrease; rises; $17 billion E) downward; rise; decrease; falls; approximately $11.9 billion
If required reserves are $50 and deposits are $1000, what is the required reserve ratio?
What will be an ideal response?
Under a floating exchange-rate regime, the domestic currency will normally depreciate if the money supply
A. contracts. B. is managed to keep the country's inflation rate steady. C. expands. D. does not change with the change in the exchange rates.
Refer to the information provided in Figure 7.4 below to answer the question(s) that follow. 
Figure 7.4Refer to Figure 7.4. The marginal product of the third worker is
A. 10. B. 28.67. C. 32. D. 42.