An expansion in a country's capital stock is associated with a(n) _____
a. increase in potential GDP
b. decline in future consumption
c. increase in human capital
d. decline in the rate of investment
e. increase in national debt
a
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Suppose two industries had the same four-firm concentration ratio, but one industry was an unbalanced oligopoly and the other was balanced. The market share of the fourth largest firm in the unbalanced oligopoly will be
a. smaller or larger than the market share of the first largest firm in the unbalanced oligopoly b. smaller than the market share of the fourth largest firm in the balanced oligopoly c. larger than the market share of the first largest firm in the balanced oligopoly d. more than 20 percent e. the same as the fourth largest firm in the balanced oligopoly
Money fulfills which of the following functions?
a. a medium of exchange b. a unit of account c. a store of value d. all of the above are functions of money
In the late 1990s, Brazil decided to reduce the value of its currency, the real, in order to boost exports and help the economy to move out of a recession. Argentina, the main trade competitor of Brazil in various products, was immediately affected by Brazil's decision, since it would:
A. decrease Argentina's imports and decrease Argentina's trade deficit. B. increase Argentina's exports and decrease Argentina's trade deficit. C. decrease Argentina's exports and increase Argentina's trade deficit. D. increase Argentina's imports and decrease Argentina's trade deficit.
When the "real" GDP falls, the rate of unemployment generally:
A. increases. B. decreases. C. stays constant. D. equals the natural rate.