In the classical model, fiscal policy is both ineffective and unnecessary
a. True
b. False
A
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Starting from long-run equilibrium, an increase in autonomous consumption results in ________ output in the short run and ________ output in the long run.
A. higher; higher B. higher; potential C. lower; higher D. lower; potential
The purpose of the Current Population Survey is to determine the
What will be an ideal response?
The capital-labor ratio will tend to decrease over time when
A) investment per worker equals saving per worker. B) investment per worker is less than saving per worker. C) investment per worker exceeds depreciation per worker. D) saving per worker equals depreciation per worker. E) output per worker exceeds capital per worker.
If total revenue exceeds the total cost of production, a firm
A. suffers a loss. B. shuts down. C. earns a profit. D. breaks even.