If capital demand shifts to shorter lived equipment, then
A) net investment will fall.
B) net investment will increase.
C) net investment will not change.
D) the effect on net investment is unknown.
B
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Inflation is a measure of the ________ of prices; the CPI is a measure of the ________ of prices.
A. current level; rate of change in the level B. index; base year's level C. base year's level; index D. rate of change in the level; current level
According to the new classical system,
a. an anticipated change in aggregate demand will cause labor suppliers to make price forecast errors and will, therefore, affect output and employment. b. anticipated changes in aggregate demand will not affect output and employment because labor suppliers have perfect information about the price level. c. unanticipated changes in aggregate demand will shift both the aggregate demand schedule and the aggregate supply schedule. d. both b and c. e. None of the above
The "vicious cycle of discrimination" refers to
a. the use of statistical discrimination to perpetuate the impact of employer prejudice on minorities b. the portion of the wage differential between two groups that cannot be accounted for by differences in education and job experience c. lower wage rates that reduce incentives to improve skill levels and gain job experience, which perpetuates lower wage rates d. any job-market discrimination that remains after all premarket discrimination has been eliminated e. job-market discrimination that leads to increased prejudices among workers and customers, thus generating more discrimination
Deficits are created by governments running a large debt
a. True b. False Indicate whether the statement is true or false