A construction company builds roads with machinery (capital, K) and labor (L)
If we plot the isoquants for the production function so that labor is on the horizontal axis, then a point on the isoquant with a small MRTS (in absolute value) is associated with high ________ use and low ________ use. A) labor, capital
B) capital, labor
C) concrete, gravel
D) none of the above
A
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In the IS curve, if Y increases for any given level of the real interest rate ________
A) consumption increases B) output decreases C) saving decreases D) all of the above E) none of the above
The narrow definition of the money supply includes only currency held by the nonbanking public
a. True b. False Indicate whether the statement is true or false
As new firms enter a monopolistically competitive industry, the demand for a typical firm's product will most likely:
a. increase and become less elastic. b. decrease and become more elastic. c. increase and become more elastic. d. decrease and become less elastic. e. remain unaffected.
Equal increases in government spending and taxes will exactly offset each other, leaving the equilibrium level of output unchanged
Indicate whether the statement is true or false