304 Final Exam Questions And Answers Latest Updates 2024( A+ Graded 100% Verified).

the elements of investment spending are {Ans: highly procyclical}The expected real cost of using a unit of capital over a given period of time is known as ________. {Ans: the user cost of capital}which of the following will be counted as an investment expenditure in the measurement of GDP {Ans: purchase of an apartment in a newly built building}the marginal product of labor (MPL) is given by the _____________. {Ans: labor share of income x average output per unit of labor}gross investment is equal to {Ans: net investment + depreciation}Consider a small open economy with desired national saving of S = 200 + 10,000rw and desired investment of I = 1000 - 5000rw. If rw = 0.06 (or 6%), then net exports equal ______. {Ans: 100}the purchase and sale of financial securities (bonds and/or stocks of shares) is NOT included in calculations of investment spending because {Ans: they do not necessarily lead to a change in the amount of output produced in the United States}In a small open economy, S = 5 + 100rw I= 10 - 50rw, Y = 50 G = 3 rw = 0.05 (=5%) Net exports are equal to