Fluctuations in investment:
a. account for almost all of the variability in gross domestic product (GDP) only during expansions.
b. account for little of the variability in gross domestic product (GDP)
c. account for almost all of the variability in gross domestic product (GDP) only during recessions.
d. are larger during expansions than during recessions.
e. account for more of the variability in gross domestic product (GDP) than consumption.
e
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If a profit-maximizing firm finds that, at its current level of production, MR > MC, it will
A) earn greater profits than if MR = MC. B) increase output. C) decrease output. D) shut down.
Assume the following cost information about Fred's widget company: Its fixed cost is $27, and its total variable cost is $18 for 1 unit; $33 for 2; $45 for 3; $60 for 4; and $78 for 5 . Given this information: a. the marginal cost of providing the second unit is $15. b. the total cost of producing 4 units is $87
c. the average total cost of producing five units is $21. d. all of the above are true.