In Figure 10-5 above, suppose that a "neutral" technological improvement occurs. This causes a movement of the steady-state point such as from points
A) A to B.
B) D to B.
C) D to C.
D) A to C.
E) A to D.
A
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An automobile manufacturer uses land, labor, capital, and entrepreneurial ability to produce cars and trucks. If the price of trucks increases, the automobile manufacturer would not _____
a. pay a lower wage rate to labor b. increase truck production c. hire more workers d. increase capital used in production e. increase land used in production
An economic boom in the United States would cause the aggregate demand curve in other countries to shift outward
a. True b. False Indicate whether the statement is true or false
Let M = money supply; P = price level; V = velocity; Y = real GDP. The equation of exchange is given by:
A) M x P=V x Y. B) M x V=P x Y. C) M x Y=P x V. D) M x V=(1/P) x Y.
Refer to the above graph. Automatic stability in this economy could be decreased by:
A. shifting the government expenditure line upward but parallel to its current position. B. changing the tax system so that the tax line has a flatter slope. C. changing the tax system so that the tax line is shifted upward but parallel to its present position. D. changing the government expenditures line so that it has a negative slope.