Any event that creates a "crisis in confidence" is likely to lead to
A. higher aggregate output.
B. inflation.
C. higher aggregate prices.
D. lower aggregate prices.
Answer: D
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The above figure shows a nation's production function. Point A is
A) the maximum amount of real GDP the nation can produce. B) the labor market equilibrium quantity of employment and real GDP. C) attainable if the economy is inefficient. D) attainable if the nation uses resources efficiently. E) unattainable given the state of the economy.
If a nation's imports exceed its exports: a. net exports will be positive
b. GDP will be less than the sum of consumption, investment, and government purchases. c. GDP will be greater than the sum of consumption, investment, and government purchases. d. none of the above apply.
If the value of nominal GDP of an economy is 1.3 times the value of its real GDP, then the value of the GDP deflator in the economy will be 130
a. True b. False Indicate whether the statement is true or false
Josh runs a landscaping business in Vermont and decides to hire two people in India to maintain his bookkeeping for him electronically. Josh can pay them much less than he would pay a bookkeeper in the U.S., and the workers enjoy a higher quality of life in India thanks to their jobs with Josh's company. Josh's actions are an example of:
A. exporting. B. foreign direct investment. C. importing. D. foreign portfolio investment.