If prices of goods and services quickly adjust to demand shocks, then
A.
Firms would find it difficult to produce at their optimal output rates
B.
Output rates would quickly adjust to changes in demand
C.
Firms would find it easier to produce at their optimal output rates
D.
The economy would experience severe short-run fluctuation
C.
Firms would find it easier to produce at their optimal output rates
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According to Robert Gordon, what led to the decline in unemployment in the 1940s?
A) structural barriers to expanding output and employment disappeared once a sufficiently large increase in aggregate demand had taken place B) decline in unionization of the workforce C) President Truman moving away from the policies implemented by President Roosevelt D) the strengthening of property rights following the end of the New Deal
Suppose the U.S. dollar depreciates, and monetary authorities respond to stabilize both output and inflation. Which of the following is a correct description of the short-run consequences?
A) output, inflation, and the real interest rate have all increased B) output, inflation, and the real interest rate have returned to their original values C) output and inflation are higher, while the real interest rate has fallen D) output and inflation have returned to their original values, while the real interest rate is increased
Attitudes toward public land use have changed numerous times since the late 1800s
Indicate whether the statement is true or false
If the salvage value is positive the net present value of an investment ________ and this ________ the likelihood that managers will undertake the project.
A) decreases; decreases B) increases; increases C) increases; decreases D) decreases; increases