If investment spending increases due to increased optimism in the business sector, which of the following would occur?
a. an increase in GDP, an increase in the price level, an increase in money demand, and an increase in the interest rate
b. an increase in GDP, a decrease in the price level, an increase in money demand, and a decrease in the interest rate
c. a decrease in GDP, a decrease in the price level, a decrease in money demand, and a decrease in the interest rate
d. a decrease in GDP, a decrease in the price level, an increase in money demand, and an increase in the interest rate
e. an increase in GDP, an increase in the price level, a decrease in money demand, and a decrease in the interest rate
A
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Refer to Table 4-2. The table above lists the highest prices five consumers are willing to pay for a concert ticket. If the price of one ticket rises from $20 to $38
A) only three tickets will be sold. B) no one will buy a ticket. C) consumer surplus decreases from $62 to $12. D) consumer surplus increases from $88 to $142.
During business contractions, the growth rate of Solow residuals is ________
A) near or below zero B) well above zero C) approaching infinity D) impossible to calculate