Gross private domestic investment does not include
a. spending on new houses
b. spending to build up inventories
c. unintended inventory investment
d. spending on employee salaries
e. spending for office supplies
D
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If an economy has successful assigned policies under a fixed exchange regime, what will they have to do if they choose a new floating exchange regime?
A) Switch which agency is focused on internal vs. external balance. B) nothing C) Watch closely for signs of inflation which may trigger a policy misalignment problem. D) The answer is dependent upon their level of capital mobility which is unknown.
As more producers with differing marginal rates of transformation are added, the joint production possibility curve becomes
A) steeper. B) flatter. C) more convex to the origin. D) smoother.