If the institutions in an economy change from being inclusive to extractive, then in the economy:
A) the returns to entrepreneurship will increase.
B) the opportunity cost of entrepreneurship will decrease.
C) the number of entrepreneurs will decrease.
D) existing entrepreneurs will earn higher profits.
C
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If, at some level of output, total planned real expenditures are less than real Gross Domestic Product (GDP)
A) real GDP will either fall or remain unchanged, depending on the MPC. B) real GDP will rise. C) unplanned inventories will increase and real GDP will fall. D) real GDP remains unchanged.
The Phillips curve will shift up with ________ or ________
A) a positive supply shock; an increase in expected inflation B) a positive supply shock; a decrease in expected inflation C) a negative supply shock; an increase in expected inflation D) a negative supply shock; a decrease in expected inflation