The following factors help explain the instability of investment, except:
A. Business expectations can quickly change for unpredictable reasons
B. Innovations in the economy occur quite irregularly
C. Profits of firms are highly variable from one period to the next
D. Purchases of capital goods are usually nondiscretionary and cannot be postponed
D. Purchases of capital goods are usually nondiscretionary and cannot be postponed
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Consider the following:
(i) Suppose labor and capital are complements in production. Explain why a firm's long-run demand for labor is more elastic than its short-run demand. (ii) Suppose labor and capital are substitutes in production. Will the firm's long-run demand for labor still be more elastic than its short-run demand? Why or why not?
An inferior good is a good whose quantity demanded
a. rises when its price falls. b. falls when the price of a related good falls. c. falls when the consumer's total utility rises. d. rises when the consumer's real income falls.
A nation can determine how close it is to the classical range by considering its:
a. Capacity utilization index. b. Exchange rate. c. Size of the federal budget deficit. e. Export position.
The top 1% of income earners in the U.S. (those with the highest taxable incomes) pay
A) about the same percentage of their incomes in taxes as the average U.S. taxpayer. B) a much lower percentage of their incomes in taxes than the average U.S. taxpayer. C) a much higher percentage of their incomes in taxes than the average U.S. taxpayer. D) about 15 percent of their incomes in income taxes E) a and d