"The weather induced failure of the 1999 grain crop leads Russia to quadruple grain imports from the United States." Assuming that the U.S. grain exports come from government warehouses,
A) net investment in the United States would increase dramatically according to the flexible accelerator theory.
B) net investment in the United States would decrease dramatically according to the flexible accelerator theory.
C) there would be no change in net investment since the Russian demand is temporary.
D) net investment would increase slowly since this is agriculture.
C
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Author A accepts a $5,000 advance and a 10% royalty after 5,000 books are sold. Author B foregoes the advance and negotiates for a 15% royalty on all books sold. Author C decides to self publish his book and keep 50% of all sales revenue
Which of these authors expects to sell the fewest books? A) Author A B) Author B C) Author C D) They are all equally likely.
The macro consequence of unemployment is
A. A leftward shift in the production possibilities curve. B. Lost output for the economy. C. Lost income for the individual worker. D. A 1 percent decrease in GDP for every 1 percent decrease in unemployment.
In the Keynesian model in the short run, a decrease in government purchases causes output to ________ and the real interest rate to ________.
A. rise; rise B. fall; rise C. fall; fall D. rise; fall
Growth of real GDP per person is totally determined by the growth of average:
A. labor force participation and the share of income going to capital. B. labor force participation and the share of the population employed. C. labor productivity and the proportion of the population employed. D. labor productivity and the proportion of the population in the labor force.