Which of the following would shift the FE line to the right?
A. An increase in the future marginal productivity of capital
B. An adverse supply shock
C. A decrease in labor supply
D. An increase in the capital stock
Answer: D
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When the price level decreases, ________.
A. holders of financial assets with fixed money values decrease their spending B. the demand for money falls and the interest rate falls C. there is a decrease in consumer spending that is sensitive to changes in interest rates D. holders of financial assets with fixed money values have less purchasing power
The "law of supply" states that, other things remaining the same, firms produce
A) more of a good the less it costs to produce it. B) less of a good the more it costs to produce it. C) more of a good the higher its price. D) less of a good as the required resources become scarcer.
Based on the above figure, for which of the following levels of output at Ike's Ice Cream Kitchen does the marginal product of labor exceed the average product of labor?
A) at 10 gallons B) at 40 gallons C) at 70 gallons D) all of the above
Which of the following could explain why the demand for table salt is inelastic?
A) Salt is a luxury good. B) Salt is a rare commodity. C) Households devote a very small portion of their income to salt purchases. D) Salt is a luxury for high-income consumers but a necessity for low-income consumers.