If interest rates rise and still real investment spending increases, what must have happened to the function relating investment to the interest rate?
Answer: It shifts to the right
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According to the BEA, in the second quarter of 2012 personal consumption expenditures grew by 1.7 percent, gross private domestic investment grew by 3.0 percent,
government expenditure on goods and services decreased by -0.9 percent, imports grew by 2.9%, and exports grew by 6.0%. Given these data, it is most likely that A) GDP growth was positive in the 2nd quarter. B) GDP growth was negative in the 2nd quarter. C) the economy hit a business cycle peak. D) the economy hit a business cycle trough.
A perfectly competitive firm is a price taker. Therefore, it faces a
a. perfectly elastic supply curve for its output b. perfectly elastic demand curve for its output c. perfectly inelastic supply curve for its output d. perfectly inelastic demand curve for its output e. unit-elastic demand curve for its output
Believers in public choice see government bureaucrats choosing the level of public goods based on their desire to keep their jobs
Indicate whether the statement is true or false
A society's production possibility frontier is bowed out from the origin because some resources are better suited for producing one good as opposed to the other.
Answer the following statement true (T) or false (F)