Suppose that the capital stock initially is 1000, the depreciation rate is 0.06, and net growth of the capital stock is 120. This makes investment equal to
A) 180.
B) 60.
C) 127.2.
D) 112.8
A
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Based on the figure below. Starting from long-run equilibrium at point C, a tax cut that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies. 
A. D; C B. B; C C. B; A D. D; B
One of the most significant barriers to economic growth in the world's poorest nations is
A) political freedom. B) dead capital. C) environmental issues. D) U.S. government interference.
The aggregate demand curves in Figure 13.1 have a positively-sloped portion. The reason this can happen is ________
A) sloppy editing B) the monetary policy response to declining inflation causes the real interest rate to fall, which causes output to rise C) a sudden increase in potential output D) changes in expected inflation cause the real interest rate to change in the opposite direction E) rising inflation causes financial frictions to increase
Suppose that a small business takes in monthly revenue of $200,000 . Labor, rental, energy, and other purchased input costs come to a total of $170,000 . The owner/entrepreneur's monthly opportunity cost of her time invested in the business is $5,000 (this is what she could earn working elsewhere), and the owner/entrepreneur could get a return of $5,000 each month if she sold her business and
invested the net proceeds in a financial asset such as a treasury bond. Which of the following correctly describes her monthly economic profit? a. $200,000 b. $190,000 c. $30,000 d. $20,000