It is important to distinguish investment expenditures from consumption expenditures because
A) households invest and business firms consume.
B) foreign firms invest and domestic firms consume
C) investment, not consumption, increases the natural real GDP.
D) consumption, not investment, increases natural real GDP.
C
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The welfare effects of quotas depend, to some extent, on who has the right to import the quota restricted goods
Indicate whether the statement is true or false
When a firm expands in size such that its workers can specialize in any one activity, the long-run average total cost of the firm gradually increases
a. True b. False Indicate whether the statement is true or false
If cyclical unemployment is eliminated
a. GDP is at its full-employment level b. GDP is at its equilibrium level c. the loanable funds market is in equilibrium d. the aggregate supply curve shifts upward e. potential output has increased
If the supply of loanable funds curve shifts right, then the equilibrium
a. interest rate and level of net capital outflows rise. b. interest rate rises and the equilibrium level of net capital outflow falls. c. interest rate falls and the equilibrium level of net capital outflow rises. d. interest rate and level of net capital outflows fall.