In a binding situation, the AD curve is vertical.
Answer the following statement true (T) or false (F)
True
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Explain Paul Romer's ideas concerning economic growth
What will be an ideal response?
If nominal GDP increases from one year to the next, then
A) production must have increased. B) production could have increased, decreased, or stayed the same. C) prices must have increased. D) prices and production must both have increased. E) prices and production must both have decreased.
Which of the following expenditures would increase the consumption component of U.S. GDP?
A. You buy a used book about finance. B. You buy 1,000 shares of stock. C. You buy a new house. D. You buy a pizza.
Physical capital is distinguished from human capital because
A) physical capital refers to trained people. B) physical capital refers to equipment and machinery, whereas human capital refers to trained people. C) human capital refers only to day laborers. D) physical capital refers to trained people, whereas human capital refers to equipment and machinery.