Suppose Pippi buys an oven for her pizza parlor for $100,000. Pippi's pizza tasted so pitiful she went out of business 12 months later. She was able to sell the pizza oven for $75,000. This decrease in the value of the oven is

The use of discretionary fiscal policy is hampered by

i. difficulty of estimating the level of potential GDP. ii. lack of accuracy of economic forecasts. iii. the small impact tax cuts and increases in government expenditure have on aggregate demand. A) i only B) ii only C) iii only D) i and ii E) i, ii, and iii

A firm should make an investment if the expected return is greater than

A) the marginal cost of the investment. B) the fixed cost of the investment. C) the opportunity cost of the investment. D) the expected rate of inflation.