Suppose that a major natural disaster destroys a large part of a country's capital stock but miraculously does not cause anybody bodily harm. What will happen to the real wage rate?
A. It will not change.
B. It will rise.
C. It will fall.
D. It could rise or fall.
Ans: C. It will fall.
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Which of the following is not one variable in the equation of exchange? a. Real output
b. The interest rate. c. The money supply. d. The price level.
Stick Storage manufactures and sells computer flash drives. Last year it sold 2 million flash drives at a price of $10 each. For last year, the firm's
a. accounting profit was $20 million. b. economic profit was $20 million. c. total revenue was $20 million. d. explicit costs was $20 million.
So in equilibrium
What will be an ideal response?
If the capital stock decreases, then the economy will produce ____ output with the ____ amount of labor.
A. same, same B. less, same C. more, same D. more, decreased