Refer to Figure 11-4. The movement from E to B to D in the figure above illustrates
A) diminishing returns to capital. B) an improvement in technology.
C) diminishing returns to labor. D) a decline in capital per worker.
B
You might also like to view...
One way to approach saving is to have a goal of building a(n) ______________ of three to six month's income
a. Emergency fund b. Umbrella reserve c. Quantity fund d. Production/consumption reserve
All taxes distort market decisions, affecting the buying and selling of goods and services
a. True b. False Indicate whether the statement is true or false
Let demand be given by P = 20 - 3Q and supply by P = 5 + 2Q. Equilibrium quantity will be:
A. 10 B. 3 C. 5 D. 11
How do we show the short-run impact of an increase in spending growth in our aggregate demand and aggregate supply model?
A. The AD curve shifts to the right, and inflation and real growth both decrease along the SRAS curve. B. The AD curve shifts to the right, and inflation and real growth both increase along the SRAS curve. C. The AD curve shifts to the left, and inflation and real growth both decrease along the SRAS curve. D. The AD curve shifts to the left, and inflation and real growth both increase along the SRAS curve.