For the nation's capital stock to grow, net investment must be positive.
Answer the following statement true (T) or false (F)
True
Because some capital wears out each year due to depreciation, the capital stock will grow only if the worn-out part is replaced and even more capital is added.
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If the economy is producing ________, unemployment is at its natural rate
A) at an unemployment rate of zero B) at an inflation rate of zero C) at potential GDP D) above potential GDP
Which of the following would be most likely to cause an outward shift of the demand curve for electricity?
a. a decrease in the price of electricity b. an increase in the price of air conditioners c. an increase in the price of heating oil d. a decrease in the price of natural gas
Two goods are substitutes when:
a. an increase in the supply of one good causes the demand for the other good to decrease. b. an increase in the demand for one good causes the price of the other good to decrease. c. an increase in the price of one good causes the demand for the other good to increase. d. an increase in the price of one good causes the demand for the other good to decrease.
Devoting more of a country’s resources for producing consumer goods means
A. economy is using its resources for future production. B. fewer resources to producing investment goods. C. country will grow more rapidly in the future. D. productivity of the invested capital is extremely high.