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An improvement in technology causes the production possibilities frontier (PPF) to |
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shift to the right. |
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pivot upward. |
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shift to the left. |
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pivot downward. |
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Which of the following is not shown by the circular flow model? |
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The flow of resources in one direction and money in the other |
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The equality of aggregate spending and aggregate income |
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The interaction of households, firms, and the government |
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The total amount of goods and services the economy can produce |
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Gross domestic product (GDP) is defined as |
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the market value of all final goods and services produced in an economy in a given period of time. |
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the market value of all consumption goods and services produced in an economy in a given period of time. |
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the market value of all investment goods and services produced in an economy in a given period of time. |
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the real value of all investment goods and services produced in an economy in a given period of time. |
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includes all domestic and foreign transactions. |
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includes the dollar value of domestic transactions only. |
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tries to isolate the effect of changing output, holding prices constant. |
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measures GDP in terms of prices of goods and services produced. |
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When economists talk about economic growth, they are usually referring to |
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the percentage change in nominal GDP. |
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the percentage change in real GDP. |
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the percentage change in nominal investment. |
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the percentage change in real investment. |
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