Suppose the stock of capital remains constant. By adding more labor, perhaps a second work shift, output
A) remains the same. B) decreases.
C) increases. D) becomes more costly.
C
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Cyclical unemployment is primarily caused by:
A. a large proportion of youthful workers in the labor force. B. fluctuations in aggregate demand. C. a lack of training on the part of job seekers. D. the failure of job seekers to search adequately for the available jobs.
Fiscal policy options can take the form of
A) Automatic fiscal policy instruments. B) Open market operations. C) Nuclear fiscal policy instruments. D) All of the above.
The dominant strategy in the prisoners' dilemma is for
A) neither player to confess. B) both players to confess. C) only the dominant player to confess. D) the dominant player not to confess.
The Fed can attempt to increase the federal funds rate by
A) selling Treasury bills, which increases bank reserves. B) buying Treasury bills, which increases bank reserves. C) selling Treasury bills, which decreases bank reserves. D) buying Treasury bills, which decreases bank reserves.