Causation occurs when:
A) two variables tend to move in opposite directions.
B) change in one variable is the reason for the change in another variable.
C) two variables tend to move in the same direction.
D) change in one variable does not cause any change in another variable.
B
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Refer to Figure 22-4. The movement from A to B to C illustrates
A) an improvement in technology. B) diminishing returns to labor. C) a decline in capital per worker. D) diminishing returns to capital.
In order for the crude quantity theory to be valid, ______ and ______ need to be constant.
Fill in the blank(s) with the appropriate word(s).
Increases in resources or improvements in technology will tend to cause a society's production possibilities curve to:
A. become vertical. B. shift inward or to the left. C. shift outward or to the right. D. become horizontal.
When the economy is in the Keynesian range, an increase in aggregate demand will
A. increase the price level and have no effect on real national output. B. increase the real national output and have no effect on the price level. C. increase both real output and the price level. D. increase the price level and decrease the real national output.