Which of the following does not describe a characteristic of short-term economic fluctuations?
A. Expansions and recessions are felt in only a few sectors of the economy.
B. The unemployment rate rises during recessions.
C. Durable-goods industries are more sensitive to short-term fluctuations than service and non-durable industries.
D. Expansions and recessions are irregular in length and severity.
Answer: A
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The aggregate production function of Ritland is Y = A × K0.3 × H0.7. The total output produced in Ritland in a certain year was worth $135,000
The technology used in the country improved over the next 10 years while the capital stock and the efficiency units of labor remained approximately the same. Which of the following is likely to be true in this case? A) The Human Development Index of the country is likely to improve. B) The gross domestic product of the country is likely to increase. C) The gross domestic product of the country is likely to decrease. D) The inflation rate in the country is likely to reduce.
If a British automobile sells for £20,000 and the British pound is worth $1.50, then the dollar price of the automobile is
A) $1.60. B) $12,500. C) $20,000. D) $30,000.
Technological innovations and the increasing mechanization of industry:
a. have led to long-run aggregate unemployment that is difficult to eradicate. b. have led to lower wages for skilled workers. c. mean higher prices for consumers. d. ultimately create new jobs that replace old jobs.
Why does Congress persistently provide subsidies for ethanol, a corn-based substitute for gasoline?
a. Ethanol is less corrosive and therefore automobile engines run more efficiently and last longer when operated with ethanol. b. Production of gasoline with ethanol is more economical. c. Legislators gain political support from corn farmers and ethanol producers even though it is more expensive to produce gasoline with ethanol. d. The production and distribution of ethanol is good for the environment.