Suppose that inventories are rising. We could expect that, in the future:
A. Real GDP will likely increase
B. Real GDP will likely decrease
C. We can't predict what will happen to real GDP
D. Firms will raise prices of their goods and services
B.
Real GDP will likely decrease
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A linear total cost curve which passes through the origin implies that:
a. average cost is constant and marginal cost is variable. b. average cost is variable and marginal cost is constant. c. average and marginal costs are constant and equal. d. need more information to answer question.
Unlike perfectly competitive firms, monopolists can control
a. how much of the good to produce b. what inputs to use in production c. its plant size d. the price charged per unit of output e. the quality of inputs used in production
If $1 is worth .8 Canadian dollars, then 1 Canadian dollar is worth:
A. $1.80. B. $1.25. C. $0.20. D. $0.80.
Professor Cowen's objection to fiscal policy spending by government is:
A. the government may rush to start stimulus spending and not spend money in the most effective way possible. B. the government may put too much thought into the spending projects and confuse stimulus spending with industrial policy. C. households and businesses might realize that the boost in spending is from the government and simply save the income they receive. D. the government may not have enough money available to do an appropriate amount of spending.