Suppose There Has Been an Increase in Investment

question 76

Multiple Choice

Suppose there has been an increase in investment.As a result,real GDP will ________ in the short run,and ________ in the long run.

• A)increase;increase further
• B)increase;decrease to its initial value
• C)decrease;decrease further
• D)decrease;increase to its initial level

Assess the effects of barriers to market entry on competition and market outcomes.

Analyze the factors that impact the likelihood of successful collusion and the consequences of cartels.

Understand the concept and implications of market power in various market structures.

Recognize the unique characteristics and dynamics of oligopolistic markets, including mutual interdependence.

---

Definitions:

Elements

The entities on which data are collected.

Samples

Collections or subsets of data taken from a larger population, used to analyze and make inferences about the population.

Ordinal Scale

The scale of measurement for a variable if the data exhibit the properties of nominal data and the order or rank of the data is meaningful. Ordinal data may be nonnumeric or numeric.

Interval Scale

The scale of measurement for a variable if the data demonstrate the properties of ordinal data and the interval between values is expressed in terms of a fixed unit of measure. Interval data are always numeric.