Which statement best describes economic fluctuations?
a. Expansions and contractions typically have about the same lengths.
b. Expansions typically last 7 years, while recessions typically last 3 years.
c. Expansions tend to be shorter than contractions.
d. The percent change in output is larger during recessions than during expansions.
e. Expansions and contractions vary in duration and magnitude, with expansions tending to last longer than contractions.
E
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When the Fed conducts an open market operation by purchasing securities from a bank, ________
A) public holdings of securities increase B) the bank's deposits increase but its reserves do not change C) the bank's deposits increase but its reserves decrease D) the bank's reserves increase
Fixed costs are best defined as:
a. costs that do not vary with output. b. costs that are at a minimum when output approaches the firm's capacity. c. the amount that one more unit of output adds to total costs. d. costs that decline as output increases.
Monopsony firms will hire more workers than they would if the labor market were competitive
Indicate whether the statement is true or false
Which of the following are the two categories of investment measured in the expenditure approach?
a. durable investment; nondurable investment b. fixed investment; inventory investment c. capital investment; noncapital investment d. gross investment; net investment