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
