The effect of a drop in business confidence on the evaluation of MPK shifts the IS curve to the ________. Suppose the LM curve is fixed
The resulting ________ in the interest rate works through the accelerator model to ________ the fall in equilibrium output. A) left, rise, increase
B) left, rise, more than offset
C) left, fall, offset part of
D) right, rise, offset part of
E) right, fall, more than offset
C
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In general, as the amount of labor input increases, the amount of output
a. increases. b. decreases. c. remains constant. d. increases only if the capital stock also increases.
When costs that vary with the level of output are divided by the output, you have calculated
a. total changing cost. b. total fixed cost. c. average fixed cost. d. average variable cost.
It is impossible for the government to maintain a balanced budget while using fiscal policy to eliminate a recessionary gap.
Answer the following statement true (T) or false (F)
Refer to the table. As compared to production alternative D, the choice of alternative C would:
Answer the question on the basis of the data given in the following production possibilities
table:
A. tend to generate a more rapid growth rate.
B. be unattainable.
C. entail unemployment.
D. tend to generate a slower growth rate.