Which of the following scenarios is an example of an investment in human capital?
A. A firm replaces manually controlled production with a computer-controlled procedure.
B. A chemical firm supports research to develop new chemicals.
C. A firm purchases new equipment for a manufacturing process.
D. A firm pays for workers to take college classes.
Answer: D
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Environmental pollution is accounted for in ________.
A. DI B. GDP C. PI D. None of these
The short-run aggregate supply curve shows that inflation will change as a result of changes in ________
A) output B) potential output C) expected inflation D) price shocks E) all of the above
A demand curve that is perfectly horizontal is
A. perfectly elastic. B. perfectly inelastic. C. relatively elastic. D. relatively inelastic.
Other things equal, cost-push inflation results in output ________ and the price level ________.
A. increasing; increasing B. decreasing; decreasing C. decreasing; increasing D. increasing; decreasing