Capital shallowing occurs because old capital depreciates, or becomes completely obsolete with the passage of time
a. True
b. False
Indicate whether the statement is true or false
False
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If the Fed fears inflation, it ________ by ________ government securities
A) decreases aggregate supply; selling B) decreases aggregate demand; selling C) increases aggregate supply; buying D) decreases aggregate supply; buying E) increases aggregate demand; selling
Consider a Stackelberg duopoly with the following inverse demand function: P = 100 ? 2Q1 ? 2Q2. The firms' marginal costs are identical and are given by MCi(Qi) = ciQi. Based on this information, the Stackelberg leader's marginal revenue function is:
A. MR(QF) = 100 ? QF - 0.5cF. B. MR(QL) = 50 ? 2QL - 0.5cF. C. MR(QL) = 50 ? 2QL - 0.5cL. D. MR(QF) = 100 ? 2QF - 0.5cF.
To be valid, acceptable, and useful, job information must be _____.
A. authentic B. technical C. industry specific D. up to date
For this question, assume expectations of P and A are correct. Now suppose that there is a 3% reduction in A. Given this information, which of the following will occur?
A) The PS relation will shift up by 2%. B) The WS relation will shift down by less than 2%. C) The WS relation will shift down by 2%. D) There will be no change in the real wage.