Which of the following would increase U.S. GDP?
a. Ford Motor Company begins to produce and sell cars in China.
b. Mercedes-Benz begins to produce and sell cars in Mississippi.
c. An American investor buys 100 shares of Ford stock.
d. An American investor purchases 100 shares of Mercedes-Benz stock.
B
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According to the table, the price of Big Macs converted to U.S. dollars varies widely around the world. This shows that Big Mac pricing does NOT follow the theory of
A) Ricardian equivalence. B) purchasing power parity. C) supply and demand. D) real versus nominal prices.
Which of the following policy actions could speed productivity growth?
I. Tax incentives to encourage saving II. Encouraging international trade III. Directing public funds toward financing basic research A) II only B) I and III C) I only D) I, II, and III
A private investment firm that holds a portfolio of securities is called a mutual fund.
Answer the following statement true (T) or false (F)
Based on this graph, in order for supply-side policies to move equilibrium to point E2, ______.
a. long-run aggregate supply and short-run aggregate supply must shift rightward, and aggregate demand must remain unchanged
b. aggregate demand must shift rightward, and long-run aggregate supply and short-run aggregate supply must remain unchanged
c. long-run aggregate supply and short-run aggregate supply must shift leftward, and aggregate demand must shift rightward
d. long-run aggregate supply, short-run aggregate supply, and aggregate demand must all shift rightward