Equilibrium GDP and the interest rate are interdependent
a. True
b. False
A
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In the short-run, a temporary increase in money supply
A) shifts the DD curve to the right, increases output and appreciates the currency. B) shifts the AA curve to the left, increases output and depreciates the currency. C) shifts the AA curve to the left, decreases output and depreciates the currency. D) shifts the AA curve to the left, increases output and appreciates the currency. E) shifts the AA curve to the right, increases output and depreciates the currency.
The basic problem with the existence of dead capital is that
A. since there is no cost to dead capital, there is an incentive to overinvest. B. dead capital cannot be put to any use since there is no ownership. C. with no clear ownership, dead capital often cannot be transferred to its most efficient use. D. dead capital creates government inefficiency, bureaucracy, and excessive regulation.
The White House's deficit commission has proposed several ways for the government to reduce the federal budget deficit, including freezing salaries of federal workers
Other things equal, freezing salaries of federal workers would tend to ________ the opportunity cost of leisure and ________ the supply of labor. A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease
Marginal benefits and total benefits are equal when net total benefits are maximized
Indicate whether the statement is true or false