Which of the following statements is (are) correct? According to the Feldstein-Horioka Saving Investment Puzzle
a. countries with relatively low saving to income ratios have relatively high investment to income ratios.
b. there is no correlation between investment and saving in developed countries.
c. countries with a high ratio of saving to income have high ratios of investment to income.
d. Both a and b
C
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In the Keynesian model deviations of output from potential are caused by:
A. fluctuations in aggregate spending. B. fluctuations in average labor productivity. C. changing asset prices. D. technological change.
What is the difference between economic and accounting profit? Why is a distinction between them important?
Based on the graphs for an increase in aggregate demand and the Phillips curve, we can see that when inflation is low, ______.
a. RGDP is high
b. unemployment is low
c. aggregate demand is weak
d. aggregate demand is strong
During World War II, a nation's opportunity cost of devoting resources to the war effort was ______________.
Fill in the blank(s) with the appropriate word(s).