According to economists, which of the following statements about international capital mobility is CORRECT?
a. International resource mobility has had no effect upon world GDP.
b. International resource mobility has had a negative effect upon world GDP.
c. International resource mobility has had a positive effect upon world GDP.
d. International resource mobility has had such a small effect upon world GDP that it is not worth measuring.
Ans: c. International resource mobility has had a positive effect upon world GDP.
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Consider the economic effects of the September 11, 2001 terrorist attacks. Which of the following statements is correct?
a. Reconstruction would lead to an increase in GDP. b. Increased government spending on relief efforts in the U.S. would decrease GDP. c. Lost items and buildings would lead to a decrease in GDP. d. U.S. well-being was improved, despite the loss in GDP.
Note: Amounts in billions.Refer to the above table. When real GDP equals $12 billion
A. unplanned inventories will decrease. B. unplanned inventories will increase. C. the economy is in equilibrium. D. government expenditures will increase.