According to the real business cycle theory, an increase in an input price, such as oil, will
A) increase both real Gross Domestic Product (GDP) and the price level.
B) increase real Gross Domestic Product (GDP) but not change the price level.
C) decrease real Gross Domestic Product (GDP) but increase the price level.
D) decrease both real Gross Domestic Product (GDP) and the price level.
C
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In general, the cost of an input:
A. decreases when you've reached the point of diminishing marginal product in your firm. B. stays the same when you've reached the point of diminishing marginal product in your firm. C. increases when you've reached the point of diminishing marginal product in your firm. D. is minimized when you've reached the point of diminishing marginal product in your firm.
An increase in the interest rate, other things constant, decreases the amount of investment spending
a. True b. False Indicate whether the statement is true or false
Why should the GDP accounts matter to the average citizen?
An economics textbook is an example of:
A. capital. B. labor. C. a natural resource. D. entrepreneurship.