If real gross domestic product is $2,000 billion and aggregate demand is $2,500 billion, unplanned inventory depletion must be taking place
a. True
b. False
Indicate whether the statement is true or false
True
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The returns to scale of the production function Q = 50 L0.4 K0.2 are
A) 50. B) .6. C) .8. D) 500.6.
A country that must reduce current consumption to increase future consumption possibilities
A) must be allocating resources inefficiently. B) must be producing along the production possibilities curve. C) must be producing outside the production possibilities curve. D) must not have private ownership of property.
In the short run, a price increase in the goods and services market will
a. increase the purchasing power of money. b. improve producer profits and, thereby, induce suppliers to expand output. c. increase resource prices, lower profits, and lead to a decline in output. d. reduce the natural rate of unemployment.
the banking system in the United States creates money through the combination of excess reserves and
What will be an ideal response?