Which of the following is likely to happen if there is an increase in entrepreneurial activity in an economy?
A) The productivity of the economy will increase.
B) The inflation rate in the economy will decrease.
C) The exchange value of its currency in the foreign exchange market will increase.
D) The income per capita of the economy will fall.
A
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The foreign purchases, interest rate, and real-balances effects explain why the ________.
A. aggregate demand curve is downward-sloping B. aggregate expenditures schedule may shift up or down C. aggregate demand curve may shift to the left or right D. economy will adjust towards equilibrium
Use the following graph to answer the next question.
If the price level is initially at P1, then the economy will adjust by:
A. reducing the price level. B. decreasing the GDP produced. C. increasing output produced. D. increasing the total output demanded.
Economists will often argue that an individual trade barrier designed to help a particular industry will work even though on net it won't help the economy as a whole. Explain what this means
What will be an ideal response?
When an outcome is weighted by a probability, it becomes an expected value
Indicate whether the statement is true or false