When economists say the quantity demanded of a product has decreased, they mean the
a. demand curve has shifted to the left.
b. demand curve has shifted to the right.
c. price of the product has fallen, and consequently, consumers are buying more of it.
d. price of the product has risen, and consequently, consumers are buying less of it.
D
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Assume that the user cost of capital (C) is simply
where r is the after tax rate of return, ? is the depreciation rate, ? is the corporate tax rate and,
r is the individual tax rate. Now assume further that the after-tax rate of return is 10 percent
and the economic depreciation rate is 2 percent. The firm faces corporate taxes of 35 percent
with an individual tax rate of 25 percent. What is the user cost of capital in this case?
Which of the following examples represents a fixed-proportion production system with capital and labor inputs?
A) Clerical staff and computers B) Airplanes and pilots C) Horse-drawn carriages and carriage drivers D) all of the above
An increase in the quantity of capital shifts the ________ curve ________ and the ________ curve ________.
What will be an ideal response?
The short-run Phillips curve is another way of looking at
A) aggregate supply. B) Okun's Law as applied to aggregate demand. C) potential GDP. D) aggregate demand. E) the natural rate of unemployment.