According to the classical economists, which of the following would make prolonged unemployment impossible?
a. Flexible prices, wages, and interest rates.
b. Activist government policies.
c. Stable investment demand.
d. A steadily growing money supply.
a
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As the capital-labor ratio increases, investment per worker
A) increases at an increasing rate. B) decreases at a constant rate. C) increases at a decreasing rate. D) decreases at an increasing rate.
If a tripling of price triples the quantity of a good supplied, the price elasticity of supply is
a. 3 b. 300 c. 1 d. -1 e. -3
Which of the following would tend to increase AD?
a. a commercial bank using excess reserves to extend a loan to a customer b. a commercial bank purchasing U.S. securities from the Fed as an investment c. an increase in reserve requirements d. an increase in the discount rate
In the Microsoft antitrust case, regulators argued that Microsoft (MS) not only required computer makers that wanted to use MS Windows to also carry their other software, but required them to:
a. choose between various word processing programs. b. remove a competitor’s software. c. use less innovative marketing practices. d. run the Macintosh operating system.