According to Tobin's q theory, when equity prices are low the market price of existing capital is ________ relative to new capital, so expenditure on fixed investment is ________
A) cheap; low
B) dear; low
C) cheap; high
D) dear; high
A
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Choosing from among the following, the worst recession was in
A. 1937-1938. B. 1980. C. 1990-1991. D. 2001.
________ occur when the average total cost falls as the quantity produced increases
A) Increasing marginal returns B) Decreasing marginal returns C) Economies of scale D) Diseconomies of scale
Which one of the following would count as investment in the national income accounts?
a. buying a U.S. government bond b. buying 100 shares of Wal-Mart stock c. buying an existing house d. a freight-hauling firm buying a new domestically produced truck
Compare changes in the price level for a recession resulting from a shift in aggregate demand to that of a recession resulting from a shift in short run aggregate supply