For a private closed economy, an unintended decline in inventories suggests that:
A. aggregate expenditures are less than the business sector expected them to be.
B. aggregate expenditures exceed production.
C. actual investment exceeds saving.
D. planned investment is greater than consumption.
B. aggregate expenditures exceed production.
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A choice made by comparing all relevant alternatives systematically and incrementally is
A) an opportunity cost. B) a choice on the margin. C) a benefit. D) a sunk cost. E) a choice made in the social interest.
In the table above, the size of the labor force is
A) 80 million. B) 46 million. C) 42 million. D) 40 million. E) 34 million.
Which of the following is most likely to be used as a measure of the velocity of money in the country of Versovia?
a. Citizens earning about $100,000 per annum b. The average cost of a vacation in the country being $1,000 c. Citizens saving more than 10 percent of their annual income d. Citizens spending about $10,000 annually on an average on vacations
The GDP gap measures the difference between:
A. NDP and GDP. B. NI and PI. C. actual GDP and potential GDP. D. nominal GDP and real GDP.