Starting from long-run equilibrium, a war that raises government purchases results in ________ output in the short run and ________ output in the long run.
A. lower; potential
B. higher; potential
C. higher; higher
D. lower; higher
Answer: B
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An individual deposits $12,000 in a commercial bank. The bank is required to hold 10% of all deposits on reserve. The deposit increases the loan capacity of the bank by
A. $9,600. B. $6,000. C. $10,800. D. $11,000.
Education and job training are part of:
A.) Business inventory spending. B.) Consumer spending on durables since the impact is long lasting. C.) Human capital investment. D.) Income transfers.
Suppose that in 2008, Ford sold 500,000 Mustangs at an average price of $18,800 per car; in 2009, 600,000 Mustangs were sold at an average price of $22,500 per car. These statements:
A. suggest that the demand for Mustangs decreased between 2008 and 2009. B. suggest that the demand for Mustangs increased between 2008 and 2009. C. constitute an exception to the law of demand in that they suggest an upsloping demand curve. D. suggest that the supply of Mustangs must have increased between 2008 and 2009.
Immigrant entrepreneurs have founded what portion of semiconductor, computer/communication, and software companies in the U.S.?
A. 5% - 10% B. 10% - 20% C. 20% - 25% D. 25% - 35%