Suppose Ed Sike, whom you've met in chapter 8, loses one of his $10 bills. What directly happens to GDP?
A) It increases by ten dollars.
B) It decreases by ten dollars.
C) It decreases by more than ten dollars due to an unavoidable multiplier process.
D) It remains unchanged.
D
Economics
You might also like to view...
A negative supply shock in the short run causes
A) unemployment to fall. B) the aggregate supply curve to shift to the left. C) equilibrium real GDP to rise. D) the price level to fall.
Economics
If Canada has an absolute advantage over Denmark in the production of wood, this implies that
a. it requires fewer resources in Canada than in Denmark to produce wood b. the opportunity cost of producing wood in Canada is lower than in Denmark c. Denmark does not benefit by trading with Canada d. Canada should buy wood from Denmark e. Canada does not benefit by trading with Denmark
Economics