Refer to Figure 8A.1. Capital deepening occurs as long as
A) total saving exceeds depreciation. B) the level of Y is increasing.
C) total saving and depreciation are equal. D) depreciation exceeds total saving.
A
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In a recessionary expenditure gap, the equilibrium level of real GDP is
A. greater than planned aggregate expenditures. B. greater than full-employment real GDP. C. less than planned aggregate expenditures. D. less than full-employment real GDP.
Which of the following is not true of all indifference curves?
A) they slope downward B) the point at which one indifference curve intersects another represents an optimal consumption basket C) they are bowed toward the origin D) they can intersect with a budget constraint one or more times
Suppose nominal GDP equaled $10,988 billion while the M2 money supply was $6,063 billion. What was the velocity of the M2 money stock?
a. 0.45 b. 0.55 c. 1.81 d. 2.36
If the spending multiplier equals 5 and equilibrium income is $2 billion below potential GDP, then _____ to reach the potential real GDP level
a. total spending needs to increase by $0.1 billion b. nominal GDP needs to increase by $1.2 billion c. total spending needs to decrease by $6 billion d. nominal GDP needs to decrease by $12 billion e. total spending needs to increase by $0.4 billion