macro mid term

Only two resources, capital and labor, are used in an economy to produce an output of 600 million units. If the total cost of capital resources is $300 million and the total cost of labor resources is $100 million, then the per-unit production costs in this economy are

$0.67

The gross domestic product for the above economy is:

$110

Refer to the data. GDP is

$121

suppose the GDP was $200 billion in 1 year and that all other components of expenditures remained the same in year 2 except that business inventories fell by $10 billion. GDP in year 2 is

$190 billion

Assume that MPS is 0.4. If spending increases by $8 billion, then real GDP will increase by

$20 billion

consumption of fixed capital is

$5

Alejandro Scoobertini owns a store specializing in soccer jerseys. In 2012, he purchased $150,000 worth of jerseys from manufacturers, employed one worker for $40,000, purchased $20,000 worth of supplies from an office supply store, and sold jerseys for $280,000. Based on this information, what was the value added at Alejandro's store in 2012

$70,000

in 2012 Alejandro purchased $150,000 worth of jerseys from manufacturers, employed one worker for $40,000, purchased $20,000 worth of supplies from an office supply store and sold jerseys for $280,000. Based on this information, what was the value added at Alejandro's store in 2012?

$70,000

Disposable income is

$75

An increase in business taxes will tend to shift the investment-demand curve rightward

.12

Suppose that new computer software for accounting and analysis at a business has a useful life of only one year and costs $200,000 before it needs to be upgraded to a new version. The revenue generated by this software is expected to be $250,000. The expected rate of return from this new computer software is:

.60

The marginal propensity to consume is:

.60

If plotted on a graph, the slope of the consumption schedule would be

.9

An increase in spending of $25 billion increases real GDP from $600 billion to $700 billion. The marginal propensity to consume must be

0.75 and the multiplier is 4

The consumer price index was 177.1 in 2001 and 179.9 in 2002. Therefore, the rate of inflation in 2002 was about:

1.6 percent

Assume there are no investment projects that will produce an expected rate of return of 8 percent or more. There are, however, $2 billion worth of investment projects with an expected rate of return at 7 percent, an additional $2 billion for every drop of the interest rate by 1 percent. If the real interest rate is 3 percent in this economy, the cumulative amount of investment at the 3 percent or higher rate of return is

10 billion

Answer the question on the basis of the following information about the hypothetical economy of Scoob. All figures are in millions, the labor force in Scoob is

102 million

Answer the question on the basis of the following information about a hypothetical economy: rate of inflation is

110 percent

Answer the question on the basis of the following information for a specific year in a hypothetical economy for which Okun's law is applicable The size of the negative GDP gap as a percent of potential GDP for the economy is

12 percent

If you knew that the per-unit production cost was $8 and that the total cost of inputs was $1,000, then the number of units of output would be

125

Answer the question on the basis of the following information for a specific year in a hypothetical economy for which Okun's law is applicable: The amount of output being forgone by the economy is:

24 billion

Suppose that new computer software for accounting and analysis at a business has a useful life of only one year and costs $200,000 before it needs to be upgraded to a new version. The revenue generated by this software is expected to be $250,000. The expected rate of return from this new computer software is

25 percent

Suppose that new computer software for accounting and analysis at a business has a useful life of only one year and costs $200,000 before it needs to be upgraded to a new version. The revenue generated by this software is expected to be $250,000. The expected rate of return from this new computer software is:

25 percent

Between 1980 and 2000 the price level approximately doubled. The average annual rate of inflation over this 20-year period was about

3.5 percent

An $18 billion increase in spending creates $18 billion of new income in the first round of the multiplier process and $13.5 billion in the second round. The multiplier in the economy is

4

Answer the following question based on the table below which illustrates the multiplier process resulting from an autonomous increase in investment by $5. The multiplier in this economy is

4

Refer to the given information. If the members of the underground economy are presently counted as part of the unemployed when in fact they are employed, the official unemployment rate is overstated by about

5 percentage points

MPC is constant at various levels of income

A decrease in interest rates

Which of the following may shift the consumption schedule upward

A decrease in interest rates

If producers must obtain higher prices than before to produce a given level of output, then the following has occurred

A decrease in supply

Which of the following does not illustrate the idea of creative destruction

A firm has to destroy some of the expired products in its inventory

Which is an example of barter

A person trades a desk for a box of tools

One essential trade-off involving business risk which the market system provides is reflected in which of the following

Access to the firm's profits and gains are open only to those who take on the business risk of the firm

If the unemployment rate for the United States economy rises from 7 to 11 percent during a year, we can conclude that:

Actual GDP is less than potential GDP

Which of the following factors would decrease investment demand

An increase in the cost of acquiring capital goods

Which of the following statements is correct

An increase in the price of C will decrease the demand for complementary product

Specialization is beneficial

At the individual, regional, and even international levels

The fraction, or percentage, of total income which is consumed is called the

Average propensity to consume

As disposable income decreases, the:

Average propensity to consume increases

The fraction, or percentage, of total income which is saved is called the

Average propensity to save

Refer to the above figures with consumption schedules in figure (A) and saving schedules in figure (B), which correspond to each other across different levels of disposable income. If, in figure (A), line A2 shifts to A3 because of the so-called wealth effect, then in figure (B) line

B2 will shift to B1

the agency responsible for compiling the National Income Product Accounts for the U.S. economy is the

Bureau of Economic Analysis

The agency responsible for compiling the National Income Product Accounts for the U.S. economy is the

Bureau of Economic Analysis.

According to the circular flow model, product markets are where

Businesses earn their revenues from households

Economy A: gross investment equals depreciation Economy B: depreciation exceeds gross investment Economy C: gross investment exceeds depreciation

C is growing more rapidly than that in economy B.

One major element of the command system is

Central planning conducted by the government

If box A represents households, B the product market, and C businesses, and if flow (3) represents revenues, then flow (1) would represent

Consumption expenditures

In a market system, self-interest is the motivating force that

Coordinates and creates consistency in the operations of various parts of the economy

Given the expected rate of return on all possible investment opportunities in the economy, a(n

Decrease in the real rate of interest will tend to increase the level of investment

The amount of consumption in an economy correlates

Directly with the level of disposable income

Capital accumulation in a market system results from

Dollar votes by entrepreneurs and business owners

As the consumption and saving schedules relate to real GDP, an increase in taxes will shift:

Downward both the consumption and saving schedules

Which of the following is correct

During the Great Recession, unemployment rates for men rose above those of women.

A trough in the business cycle occurs when

Employment and output reach their lowest levels

An increase in the demand for a product and a reduction in its costs of production would

Encourage firms to enter an industry

Which of the following is not a reason why specialization and trade are beneficial to society

Firms and workers become less dependent on others for producing goods and services

By freedom of enterprise, we mean that individual

Firms are free to employ resources, to produce their output, and to sell their products

The use of money for exchange and trade

Fosters more specialization in production

The use of money for exchange and trade:

Fosters more specialization in production

New college graduates still looking for their first jobs would be classified in the BLS data as

Frictionally unemployed

in determining real GDP economists adjust the nominal GDP by using the

GDP price index

All of the following statements describe a market economy except

Government prescribes the market prices for goods and services

The "invisible hand" concept refers to the

Guiding function of prices in a market system

Suppose that at prices of $1, $2, $3, $4, and $5 for product Z, the corresponding quantities supplied are 3, 4, 5, 6, and 7 units, respectively. Which of the following would increase the quantities supplied of Z to, say, 6, 8, 10, 12, and 14 units at these prices

Improved technology for producing Z

Which of the following statements about markets and prices is correct

In a market system, prices serve to ration goods and services to consumers

A change in interest rates would shift the consumption schedule and the saving schedule ______; a change in taxes would shift these two schedules ______.

In opposite directions; in the same direction

Assume the marginal propensity to consume is 0.8. If consumer spending increases by $20 billion, then real GDP will

Increase by $100 billion

How does human specialization contribute towards increasing an economy's output

It exploits the differences in abilities

Which of the following is the main problem with the barter system of exchange

It requires a coincidence of wants

Private ownership and property rights in a market system have the following implications, except

Large firms are allowed to coerce other firms and individuals

Private ownership and property rights in a market system have the following implications, except:

Large firms are allowed to coerce other firms and individuals

In general, the steeper the consumption schedule the

Larger is the multiplier

Last Word) Following the Great Recession that ended mid-2009, by December 2012

Last Word) Following the Great Recession that ended mid-2009, by December 2012

When the economy goes into a recession and firms require less labor, managers tend to

Lay off workers, and keep wages of remaining workers constant

If the consumption schedule is a straight line, it can be concluded that the

MPC is constant at various levels of income

If box A represents households, D the resource market, and C businesses, then flow (8) would represent ___ while flow (7) would represent ___.

Money income; resources

"Depression means idleness. And idleness means loss of skills, loss of self-respect, plummeting morale, family disintegration, and sociopolitical unrest." This quote describes some of the

Noneconomic costs of unemployment

"Depression means idleness. And idleness means loss of skills, loss of self-respect, plummeting morale, family disintegration, and sociopolitical unrest." This quote describes some of the:

Noneconomic costs of unemployment

If consumption increases by $10 billion at each level of disposable income, the marginal propensity to consume will:

Not change, but the average propensity to consume will change

Unanticipated inflation tends to penalize

People who save money in financial institutions

which of the following transactions would be included in GDP?

Peter buys a newly constructed house

Which of the following transactions would be included in GDP

Peter buys a newly constructed house.

Which of the following would not be emphasized in a capitalist economy

Prevention of owners of capital from exposing this resource to risk

What, according to economist Donald Boudreaux in the "Last Word" section of the chapter, best explains why the market system is not a random, chaotic mess

Private property rights encourage mutual accommodation that leads to an arrangement of resources that is productive

What, according to economist Donald Boudreaux in the "Last Word" section of the chapter, best explains why the market system is not a random, chaotic mess?

Private property rights encourage mutual accommodation that leads to an arrangement of resources that is productive

For whom is a given mix of goods and services to be produced? How, in other words, are the society's outputs to be distributed among its members?" In a market economy, this question is resolved primarily in the

Private sector through the earning and spending of income

A recession is a decline in

Real GDP that lasts six months or longer

Which of the following statements is true about productive and allocative efficiency

Realizing allocative efficiency implies that productive efficiency has been realized

The simple circular flow model shows that workers and capital-owners offer their services to firms through the

Resource markets

If disposable income is $900 billion when the average propensity to consume is 0.9, it can be concluded that

Saving is $90 billion

Which of the following statements about self-interest in a market system is false

Self-interest applies only to capitalists and entrepreneurs, not to workers employed by others

In an economy, for every $10 million increase in disposable income, saving increases by $2 million. It can be concluded that the

Slope of the consumption schedule is .8

A worker who loses a job at a call center because the company moved the call center operations to another country is an example of:

Structural unemployment

The multiplier can be calculated by dividing

The change in real GDP by the initial change in spending

Other things equal, which of the following might shift the demand curve for gasoline to the left

The development of a low-cost electric automobile.

Competition in a market system denotes a condition where

The diffusion of economic power limits its potential abuse

Which of the following would most likely increase the demand for gasoline

The expectation by consumers that gasoline prices will be higher in the future

Inflation is a rise in

The general level of prices over time

A characteristic of centrally planned economies is that

The price is relatively unimportant in allocating resources

Which of the following is not economic investment

The purchase of 100 shares of AT&T by a retired business executive

Which of the following do national income accountants consider to be investment

The purchase of a new house.

Which of the following is an intermediate good

The purchase of baseball uniforms by a professional baseball team

In a market system, the distribution of goods and services among consumers is largely determined by

The willingness and ability of consumers to pay the prices

At the $300 level of disposable income:

There is a dissaving of $10

Competition is more likely to exist when

There is easy entry into and exit out of industries

If the real interest rate increases

There will be a movement upward along the investment demand curve

Capitalism gets its name from the fact that capital resources are mostly

Treated as private property

A firm invests in a new machine that costs $2,000 a year but which is expected to produce an increase in total revenue of $2,200 a year. The current real rate of interest is 8 percent. The firm should:

Undertake the investment because the expected rate of return of 10 percent is greater than the real rate of interest

General sources of shocks that can cause business cycles include the following, except

Unemployment jumps and production drops

Suppose Smith pays $100 to Jones

We need more information to determine whether GDP has changed

The term consumer sovereignty means that

What is produced is ultimately determined by what consumers buy

In what circumstances would lenders most benefit

When there is an unanticipated decrease in inflation

Consumer sovereignty and "dollar votes" guide the market system in dealing with which fundamental economic question

Which output will be produced?

Economic systems differ from one another based on who own the factors of production and

Who make decisions regarding what to produce and how it is produced

Which of the following is not one of the five fundamental questions that an economy must deal with

Why should the goods and services be produced

a price index is

a comparison of the current price of a market basket to a fixed point of refrence

Assume the demand curve for product X shifts to the right. This might be caused by

a decline in income if X is an inferior good.

If two goods are complements

a decrease in the price of one will increase the demand for the other

The value added of a firm is the market value of

a firm's output less the value of the inputs bought from others

which of the following is a final good or service?

a haircut purchased by a father for his 12 year old son

A large negative GDP gap implies

a high rate of unemployment

Assume that the demand curve for product C is downsloping. If the price of C falls from $2.00 to $1.75

a larger quantity of C will be demanded.

A college graduate using the summer following graduation to search for a job would best be classified as

a part of frictional unemployment.

wheat

a shortage of 40 units would occur

A nation's gross domestic product (GDP

a) can be found by summing C + Ig + G + Xn.

A nation's gross domestic product (GDP):

a) is the dollar value of all final output produced within the borders of the nation during a specific period of time

The United States' economy is considered to be at full employment when

about 4-5 percent of the labor force is unemployed

Suppose that inventories were $40 billion in 2012 and $50 billion in 2013. In 2013, national income accountants would

add $10 billion to other elements of investment in calculating total investment

suppose that inventories were $40 billion in 2012 and $50 billion in 2013, national income accountants would

add $10 billion to other elements of investment in calculating total investment

in the treatment of u.s. exports and imports national income accountants

add exports but subtract imports in calculating GDP

In calculating the GDP national income accountants

add increases in inventories or subtract decreases in inventories

In calculating the GDP, national income accountants

add increases in inventories or subtract decreases in inventories

In which industry or sector of the economy is output least likely to be affected by the business cycle

agricultural commodities

Because of unseasonably cold weather, the supply of oranges has substantially decreased. This statement indicates the

amount of oranges that will be available at various prices has declined

Who is least likely to be hurt by unanticipated inflation

an owner of a small business

National income accountants define investment to include:

any increase in business inventories

national income accountants define investment to include

any increase in business inventories

The production technique that is most efficient is the one that produces a given amount of output

at the lowest cost per unit

In national income accounting, the consumption category of expenditures includes purchases of

automobiles for personal use but not houses

in national income accounting the consumption category of expenditures includes purchase of

automobiles for personal use but not houses

The government agency responsible for collecting and reporting unemployment data is the

bureau of labor statistics

Recurring upswings and downswings in an economy's real GDP over time are called

business cycle

The recurrent ups and downs in the level of economic activity extending over several years are referred to as

business cycles

In which of the following industries or sectors of the economy will business cycle fluctuations likely have the greatest effect on output

capital goods

the largest component of national income is

compensation of employees

In a market system, which of the following will eliminate high-cost producers, and allow only the low-cost producers to survive

competition

the largest component of total expenditures in the United States is

consumption

If box A represents households, B the product market, and C businesses, and if flow (3) represents revenues, then flow (1) would represent

consumption expenditures

If box A represents households, B the product market, and C businesses, and if flow (3) represents revenues, then flow (1) would represent:

consumption expenditures

GDP can be calculated by summing

consumption, investment, government purchases, and net exports

Inflation initiated by increases in wages or other resource prices is labeled

cost-push inflation

Payments that a firm makes to obtain needed resources comprise its

costs

A headline states: "Real GDP falls again as the economy slumps." This condition is most likely to produce what type of unemployment

cyclical

Unemployment that occurs when there is deficient demand for the goods and services of an economy is called

cyclical unemployement

The type of unemployment associated with recessions is called

cyclical unemployment

Which of the following types of unemployment is directly associated with insufficient overall demand for goods and services

cyclical unemployment

If the unemployment rate is 9 percent and the natural rate of unemployment is 5 percent, then the

cyclical unemployment rate is 4 percent.

When unanticipated deflation occurs

debtors are hurt but creditors benefit

If households in the economy save more of any extra income that they earn, then the multiplier effect will

decrease

If X is a normal good, a rise in money income will shift the

demand curve for X to the right.

If Z is an inferior good, an increase in money income will shift the

demand curve for Z to the left.

Inflation that occurs when total spending is greater than the economy's ability to produce output at the existing price level is:

demand pull inflation

Which of the following would most likely occur during the expansionary phase of the business cycle

demand-pull inflation

The relationship between the size of the negative GDP gap and the unemployment rate is

direct

in a typical year which of the following measures of aggregate output and income is likely to be the smallest

disposable income

A production system where various workers concentrate on different specialized tasks to contribute towards a whole product is referred to as

division of labor

Economy A: gross investment equals depreciation Economy B: depreciation exceeds gross investment Economy C: gross investment exceeds depreciation

economy C only

In the expansion phase of a business cycle

employment and output increase

in the expansion phase of a business cycle

employment and output increase

"Creative destruction" in a market system is brought about by

entrepreneurship

transfer payments are

excluded when calculating GDP because they do not reflect current production

Transfer payments are

excluded when calculating GDP because they do not reflect current production.

Net exports are

exports less imports

Cost-push inflation tends to be characterized by all of the following, except

falling unemployment

An increase in business taxes will tend to shift the investment-demand curve rightward

false

During the Great Recession, unemployment rates for men rose above those of women.

false

During the past ten years, the annual rate of inflation in the United States has averaged less than 1 percent

false

People who work part time, but desire to work full time, are considered to be officially unemployed

false

The business cycle is so named because upswings and downswings in business activity are predictably equal in terms of duration and intensity

false

The multiplier will be larger, the steeper is the saving schedule

false

(Consider This) If wages were more downwardly flexible, then we would expect

fewer layoffs during recessions.

A normal good is one

for which the consumption varies directly with income

The natural rate of unemployment is the

full-employment unemployment rate.

If box A represents households, B the product market, and C businesses, then flow (2) and flow (4) would represent:

goods and services

final goods and services refer to

goods and services purchased by ultimate users, rather than for resale or further processing

Final goods and services refer to

goods and services purchased by ultimate users, rather than for resale or further processing.

Which of the following is assumed to be most limited in scope under a market system

governemnt

Government purchases include government spending on

government consumption goods and public capital goods

A cumulative wage-price spiral which produces very rapid inflation is called

hyperinflation

gross domestic product measures and reports output

in dollar amounts and percentage growth

Gross domestic product (GDP) measures and reports output

in dollar amounts and percentage growth.

which of the following best defines national income

incomes earned by u.s. resource suppliers plus taxes on production and imports

When the price of oil declines significantly, the price of gasoline also declines. The latter occurs because of a(n

increase in the supply of gasoline

Other things equal, an excise tax on a product will

increase its price

Suppose product X is an input in the production of product Y. Product Y in turn is a substitute for product Z. An increase in the price of X can be expected to

increase the demand for Z

If the demand and supply curves for product X are stable, a government-mandated increase in the price of X will

increase the quantity supplied of X and decrease the quantity demanded of X

If in some year gross investment was $120 billion and net investment was $65 billion, then in that year the country's capital stock

increased by $65 billion

A government subsidy to the producers of a product

increases product supply

suppose a nation's 2010 nominal GDP was $972 billion and general price index was 90. to make the 2010 gdp comaparable with the base year GDP the 2010 GDP must be

inflated to $1,080 billion

A peak in the business cycle

is a temporary maximum pt

Unlike demand-pull inflation, cost-push inflation

is self-limiting

what are the primary effects of cost push inflation

it reduces real output and redistributes a decreased level of real income

The annual rate of inflation can be found by subtracting

last year's price index from this year's price index and dividing the difference by last year's price index

A lender need not be penalized by inflation if the

lender correctly anticipates inflation and increases the nominal interest rate accordingly

Most economists agree that the immediate determinant of the volume of output and employment is the

level of total spending.

The presence of discouraged workers

may cause the official unemployment rate to understate the true amount of unemployment.

If consumer incomes increase, the demand for product X

may shift either to the right or left.

Anything that is generally acceptable in trading for goods and services is a

medium of exchange

GDP is the

monetary value of all final goods and services produced within the borders of a nation in a particular year

the total amount of income earned by U.S. resource suppliers in a year, plus taxes on production and imports measured by

national income

the system that measures the economy's overall performance is formally known as

national income accounting

The system that measures the economy's overall performance is formally known as

national income accounting.

The smallest component of aggregate spending in the United States is

net exports

If depreciation (consumption of fixed capital) exceeds gross domestic investment, we can conclude that

net investment is negative

in calculating GDP governmental transfer payments such as social security or unemployment compensation are

not counted

National income accountants can avoid multiple counting by

only counting final goods

national income accountants can avoid multiple counting by

only counting final goods

steps of a business cycle

peak recession trough expansion

During a period of hyperinflation

people tend to hold goods rather than money

Full-employment output is also called

potential output

The supply curve shows the relationship between

price and quantity supplied

An increase in the quantity demanded means that

price has declined and consumers therefore want to purchase more of the product

Inflation means that

prices on average are rising, although some particular prices may be falling.

Which of the following is not a major category of business structure

public agency

An increase in product price will cause

quantity demanded to decrease

If we say that a price is too high to clear the market, we mean that

quantity supplied exceeds quantity demanded

Which of the following formulas is correct? Percentage change in

real income approximates percentage change in nominal income minus percentage change in price level.

Which phase of the business cycle would be most closely associated with an economic contraction

recession

Suppose that tacos and pizza are substitutes, and that soda and pizza are complements. We would expect an increase in the price of pizza to

reduce the demand for soda and increase the demand for tacos

Suppose that a person's nominal income rises from $10,000 to $12,000 and the consumer price index rises from 100 to 105. The person's real income will

rise about 15 percent

In the United States, business cycles have occurred against a backdrop of a long-run trend of

rising real GDP

Consumers express self-interest when they

seek the lowest price for a product

An improvement in production technology will

shift the supply curve to the right.

A leftward shift of a product supply curve might be caused by

some firms leaving an industry

Kevin has lost his job in an automobile plant because the company switched to robots for its welding step in the assembly line. Kevin plans to go to technical school to learn how to repair microcomputers. The type of unemployment Kevin is faced with is:

structural

Unemployment involving a mismatch of the skills of unemployed workers and the skills required for available jobs is called

structural employment

A worker who loses a job at a call center because the company moved the call center operations to another country is an example of

structural unemployment

Suppose that inventories were $80 billion in 2012 and $70 billion in 2013. In 2013, national income accountants would

subtract $10 billion from other elements of investment in calculating total investment.

The value of U.S. imports is:

subtracted from exports when calculating GDP because imports do not constitute production in the United States

the value of U.S. imports is

subtracted from exports when calculating GDP because imports do not constitute production in the United States

The value of U.S. imports is

subtracted from exports when calculating GDP because imports do not constitute production in the United States.

the value of u.s. imports is

subtracted from exports when calculating GDP because imports don't constitute production in USA

When the government prints money faster than output is expanding, the inflation that will occur is a form of

taxation

nominal GDP is adjusted for price changes through the use of

the GDP price index

If intermediate goods and services were included in GDP

the GDP would be overstated

If actual GDP is less than potential GDP

the actual unemployment rate will be higher than the natural unemployment rate.

During a severe recession, we would expect output to fall the most in

the construction industry

value added refers to

the difference between the value of a firm's output and the value of the inputs it has purchased from others

Value added refers to

the difference between the value of a firm's output and the value of the inputs it has purchased from others.

If depreciation exceeds gross investment

the economy's stock of capital is shrinking.

if depreciation exceeds gross investment

the economy's stock of capital is shrinkning

As it relates to economic growth, the term long-run trend refers to

the long-term expansion or contraction of business activity that occurs over 50 or 100 years.

Suppose there are 10 million part-time workers and 90 million full-time workers in an economy. Five million of the part-time workers switch to full-time work. As a result

the official unemployment rate will remain unchanged

which of the following do national income accountants consider to be investment

the purchase of a new house

nominal GDP is

the sum of all monetary transactions involving final goods and services that occur in the economic year

the concept of net domestic investment refers to

total investment less the amount of investment goods used up in producing the year's output

If the price level doubled in a 23-year period, we can conclude that the average annual rate of inflation over that period was about 3 percent

true

The average propensity to save is equal to the percentage of total income that is saved

true

The average propensity to save is equal to the percentage of total income that is saved.

true

The natural rate of unemployment in the United States today is about 5 to 6 percent

true

Unanticipated inflation benefits debtors at the expense of creditors

true

a large underground economy results in an

understated GDP

Which of the following is most likely to be an inferior good

used clothing

An economy is enlarging its stock of capital goods

when gross investment exceeds replacement investment

an economy is enlarging its stock of capital goods

when gross investment exceeds replacement investment

When total input costs rise slower than the total units of output produced, then the per-unit production costs:

will decrease

the net foreign factor is

zero