Answer the following 15 true-false question by circling the appropriate letter.
ID: 1217781 • Letter: A
Question
Answer the following 15 true-false question by circling the appropriate letter. Remember a statement must be completely and always true to be true. Then answer the 15 multiple choice questions. Remember to select the best answer for them. Good Luck. The stock of capital is the amount of money in the economy. Crowding out is when increases in government spending cause reductions in private spending. The production function for an economy shows the maximum output that can be produced by some fixed inputs and varying amounts of a variable input. If technology improves, the production function increases. Government patents that set up monopolies, slow economic growth. Technological progress is when more output can be produced by a certain amount of inputs. Aggregate supply shows the relationship between the level of prices and the quantity or amount of real GDP or output supplied. If real income or real GDP increases, then so does aggregate demand. If aggregate demand is decreased at full employment, then the price level will rise. The federal budget deficit is what the federal government owes. Expansionary policy is government action intended to increase aggregate demand. A multiplier is the idea that an increase in government spending by $10 billion, will increase GDP by more than $10. $10 a year from now is worth more than $10 today. Financial markets allocate savings to their highest valued used in the economy. Accelerator theory says investment accelerates in a recession.Explanation / Answer
1.FALSE
In economics, capital goods, real capital, or capital assets are already-produced durable goods or any non-financial asset that is used in production of goods or services
2.TRUE
The crowding out effect is an economic theory stipulating that rises in public sector spending drive down or even eliminate private sector spending.
3.FALSE
It is a mathematical function that relates the maximum amount of output that can be obtained from a given number of inputs - generally capital and labor
4.TRUE
Better technology makes the labor inputs more productive and increases the output per worker