The amount of investment demand at each interest rate falls. If the Fed holds to an unchanged interest rate target, the change in GDP is __________ if it had held to an unchanged money supply target
A) greater than
B) less than
C) the same as
A
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Which of the following is a short run adjustment? a. A bakery hiring two additional bakers
b. Two new firms enter the textile industry. c. Three firms leave the bicycle industry. d. A computer hardware company builds a new factory.
Technology is defined as
A) the maximum output which can be attained from a stock of physical capital. B) society’s pool of applied knowledge concerning the production of goods and services. C) output beyond the production possibilities boundary. D) the utilization of the most advanced machinery.
In the long run
A. the price level is independent of the level of output. B. the level of output is independent of the price level. C. price and output levels are mutually dependent. D. the level of output is depends on the price level.
Refer to the graph. Each of the three labor demand curves shown slopes downward because of the:
A. law of diminishing marginal utility.
B. law of increasing opportunity costs.
C. principal-agent problem.
D. law of diminishing returns.