If actual output increases are believed to be temporary, then
A) net investment will fall.
B) net investment will increase.
C) net investment will not change.
D) the effect on net investment is unknown.
C
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Refer to the scenario above. The real GDP of the country in Year 1 was ________
A) $280,000 B) $2,200,000 C) $540,000 D) $1,400,000
Runs on banks occur when
A) banks keep 100 percent of their deposits on hand. B) depositors are confident that the bank will not go bankrupt. C) banks make an unusually high number of profitable loans. D) many depositors attempt to withdraw their funds simultaneously.
Suppose a farmer is a price taker for soybean sales with cost functions given by TC = .1q2 + 2q + 30 MC = .2q + 2 If P = 6 , the profit-maximizing level of output is
a. 10 b. 20 c. 40 d. 80
Studies of the effects of the minimum wage typically find that a 10 percent increase in the minimum wage depresses teenage employment by about
a. 1 to 3 percent. b. 5 to 7 percent. c. 10 percent. d. None of the above is correct because studies show no decrease in teenage employment.