Initially, the economy is at point B on Figure 10-3 above. We conclude that before adjustment,
A) per person savings is at point D and the level of steady state investment is at point C.
B) per person savings is at point E and the level of steady state investment is at point E.
C) per person savings is at point G and the level of steady state investment is at point E.
D) per person savings is at point C and steady state investment is at point D.
D
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Frictional unemployment refers to:
a. people who are out of work and have no job skills. b. short periods of unemployment needed to match jobs and job seekers. c. people who spend relatively long periods out of work. d. unemployment related to the ups and downs of the business cycle.
Which of the following examples illustrates a horizontal merger?
a. an online retailer merges with a shipping company b. a turbine manufacturer merges with a bank c. a paper product manufacturer merges with a timber producer d. a steel producer merges with another steel producer
An increase in short-run aggregate supply shifts the curve ______.
a. from SRAS2 to SRAS1
b. from LRAS2 to SRAS1
c. from SRAS1 to LRAS1
d. from SRAS1 to SRAS2
What will happen in the long run if businesses in perfect competition are experiencing losses?
A. Some sellers will go out of business, causing supply to decrease and prices to fall. B. Some sellers will go out of business, causing demand to increase and prices to rise. C. Some sellers will go out of business, causing supply to decrease and prices to rise. D. Some sellers will go out of business, causing demand to increase and prices to fall.