Refer to Figure 5.1. All else equal, an increase in the capital stock will cause a
A) shift from PF1 to PF2.
B) shift from PF2 to PF1.
C) movement up and to the right along PF1.
D) movement down and to the left along PF2.
A
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A natural monopoly would benefit by being broken into many smaller firms.
Answer the following statement true (T) or false (F)
Which statement is false?
A. The 1920s was a very prosperous decade. B. One of the main features of the 1970s was stagflation. C. There were no recessions in the 1950s. D. None of these statements are false.
The theory that regulators' behavior will eventually be compromised by the special interests they regulate is known as the
A) capitulation hypothesis. B) creative hypothesis. C) captive hypothesis. D) capture hypothesis.
The steeper is the IS curve,
A) the more effective is monetary policy. B) the less effective is monetary policy. C) the effectiveness of monetary policy does not change. D) a given change in the money supply will have a greater effect on output.