In the real business cycle model, an increase in current total factor productivity
A) increases investment demand.
B) decreases investment demand.
C) has no impact on investment demand.
D) has an ambiguous effect on investment demand.
A
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For consumers, chocolate chip cookies and doughnuts are substitutes. So, an increase in the price of chocolate chip cookies will lead to a rightward shift in the demand curve for doughnuts
Indicate whether the statement is true or false
Refer to Table 16-3. Suppose Julie's marginal cost of providing this service is constant at $7 and she decides to charge each customer according to his or her willingness to pay
What is Julie's total revenue and how many hours of service will be purchased? A) 1 hour and her total revenue = $7 B) 4 hours and her total revenue = $39 C) 4 hours and her total revenue = $28 D) 5 hours and her total revenue = $35
Suppose that a worker in Country A can make either 10 iPods or 5 tablets each year. Country A has 100 workers. Suppose a worker in Country B can make either 2 iPods or 10 tablets each year. Country B has 200 workers. A bundle of goods that Country A could potentially make would be:
A. (1,000 iPods, 500 tablets). B. (500 iPods, 500 tablets). C. (500 iPods, 250 tablets). D. (750 iPods, 150 tablets).
High protective tariffs
A. would be supported by most economists. B. will become more likely if we do not reduce our trade deficit. C. have very little support. D. would definitely solve all our trade problems.