Because financial markets clear, we know that leakages in the economy will equal injections and, therefore, there will be enough spending in the economy to purchase whatever amount of output level produced
a. True
b. False
A
You might also like to view...
An increase in the real interest rate leads to a(n) ________
A) increase in demand for capital B) decrease in demand for labor C) increase real output D) increase in demand for money
Which of the following is not one of the three pillars of productivity growth?
a. rate of capacity utilization b. rate of technological improvement c. rate of improvement in workforce quality d. rate of capital expansion
As more women decide to work outside the home and therefore hire others to work around their home, GDP will increase by the value of
What will be an ideal response?
If marginal cost is constant, what happens to a market if it alters from perfect competition to monopoly without any change in the position of the market demand curve or any variation in costs?
A. Consumer surplus is eliminated, and an equal-sized deadweight loss is created. B. Consumer surplus increases, and the previously existing deadweight loss decreases. C. Consumer surplus increases, and the previously existing deadweight loss increases. D. Consumer surplus decreases in size, and a deadweight loss is created.