A large blast furnace is an example of an indivisible input that cannot be scaled down to reduce output.
Answer the following statement true (T) or false (F)
True
You might also like to view...
If the Federal Reserve purchases newly issued government debt
A) the effect is as if the Treasury had printed money to cover the deficit. B) the effect is the same as borrowing from the public. C) the money supply decreases. D) existing money is destroyed.
Which of the following are NOT liabilities on the Fed's balance sheet?
A) discount loans B) bank deposits C) deferred availability cash items D) U.S. Treasury deposits
If the marginal propensity to consume is 0.75 and investment spending decreases by $20 billion, what will be the overall effect on GDP?
a. GDP will decrease by $20 billion b. GDP will increase by $15 billion c. GDP will decrease by $80 billion d. GDP will decrease by $30 billion e. GDP will decrease by $26.7 billion
Neoclassical economists who focus on potential GDP as the primary determinant of real GDP argue that the long-run aggregate _______________ curve is located at potential GDP.
a. demand b. supply c. production d. labor