If in 2003, $100 billion of consumption goods in Canada are produced but remain unsold and Canadian retail stores discover they have more inventory than they want, those $100 billion of consumption goods, by default, become
a. consumption goods in the form of next year's inventories
b. intended investment in the form of next year's inventories
c. investment goods in the form of next year's inventories
d. consumption goods in the form of unwanted inventories
e. investment goods in the form of unwanted inventories
E
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The absolute value of the slope of the production possibilities curve at any point:
A) gives the price of the good on the vertical axis that must be given up to attain an additional unit of the good on the horizontal axis. B) is found by dividing the horizontal change by a vertical change. C) gives the quantity of the good on the vertical axis that must be given up to produce an additional unit of the good on the horizontal axis. D) gives the price of the good on the horizontal axis relative to the price of the good on the vertical axis.
A Minnesota farmer buys a new tractor made in Iowa by a German company. As a result,
a. U.S. investment and GDP increase, but German GDP is unaffected. b. U.S. investment and German GDP increase, but U.S. GDP is unaffected. c. U.S. investment, U.S. GDP, and German GDP are unaffected because tractors are intermediate goods. d. U.S. investment, U.S. GDP, and German GDP all increase.