Aggregate private spending is stable according to non-activists PRIMARILY because
A) consumer spending is insulated from changes in income according to the PIH and LCH theories.
B) private residential and non-residential investment is volatile.
C) government spending is volatile.
D) the money supply is unstable.
A
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If actual output is less than equilibrium output, firms will ________ output to keep from ________ inventories
A) increase; accumulating B) increase; depleting C) decrease; depleting D) decrease; accumulating
Suppose labor and capital are variable inputs. The wage rate is $20 per hour, the marginal product of labor is 30 units, the rental rate of capital is $100 per machine hour, and the marginal product of capital is 150 units
If the wage rate declines to $15 per hour, the firm employs more labor and the marginal product of labor declines to 20 units. Assuming the rental rate of capital remains the same, what happens to the amount of capital used by the firm? A) Decreases B) Increases C) No change D) We do not have enough information to answer this question.
Within the city of New Orleans, most of the victims of Hurricane Katrina were
A. rich and white. B. rich and black. C. poor and white. D. poor and black.
A firm's demand schedule for labor services
A. is independent of the demand for the firm's output. B. will not change if technology changes. C. depends on the amount of other inputs used by the firm. D. is not related to the price of the firm's output.