The investment demand curve will shift to the left as the result of:
a. The availability of excess productive capacity
b. Business pessimism about future economic conditions
c. A decrease in business taxes
d. An increase in the interest rate
b. Business pessimism about future economic conditions
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Technological change that increases the marginal productivity of labor in the classical model would cause
a. labor demand, output and the price level to rise. b. labor demand to fall, the price level to fall, and output to rise. d. labor demand, output and employment to rise. c. output to rise but labor demand to fall.
Refer to Scenario 10.6. If red rubber balls can be produced at any of the three plants, and John decides to produce 1 red rubber ball, at which plant will he produce it?
A) California B) Florida C) Montana D) He is indifferent between California and Florida. E) He is indifferent between Florida and Montana.
The duration of unemployment is not a leading indicator
a. True b. False Indicate whether the statement is true or false
Starting from long-run equilibrium, an increase in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. lower; higher D. higher; potential