If U.S. citizens decide to save a smaller fraction of their incomes, U.S. domestic investment
a. increases, and U.S. net capital outflow increases.
b. increases, and U.S. net capital outflow decreases.
c. decreases, and U.S. net capital outflow increases.
d. decreases, and U.S. net capital outflow decreases.
d
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Marginal cost is best defined as
A) the extra cost of producing one more unit of output. B) the profit earned from selling one more unit of output. C) the price received from selling one more unit of output. D) equal to producer surplus.
If real GDP is increasing at a 2 percent annual rate while the unemployment rate is 7 percent, the economy is
a. not achieving full economic potential b. experiencing an increase of 2 percent in real annual per capita GDP c. experiencing a slump d. experiencing high prices and low inflation e. producing along its production possibilities frontier