In Exhibit 16-5, a shift in aggregate demand from AD2 to AD3_____________.
Fill in the blank(s) with correct word
Ans: increases real GDP, and raises the price level
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In the long run:
A) all factors of production are fixed. B) only some inputs of a firm can be changed. C) all firms earn positive economic profits. D) all factors of production can be changed.
The balanced budget multiplier
a. increases as MPC increases b. increases as MPC decreases c. depends on the absolute level of government spending d. is always greater than the income multiplier e. is always equal to 1
A rightward shift in labor demand decreases the number of workers hired
a. True b. False Indicate whether the statement is true or false
Because of the scarcity of resources, every country must answer the three basic economic questions: ________________; ___________________; and _________________.
Fill in the blank(s) with the appropriate word(s).