Albert's Pretzel Baking Company used to have four workers who were each in charge of making their own pretzels from start to finish
Now, one worker mixes the dough, another shapes it, the third puts the unbaked pretzels into the oven and the fourth removes the finished product. Output has doubled. This is an example of A) neutral technical change.
B) labor-saving technical change.
C) an organizational innovation.
D) economies of scale.
C
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Suppose that the firms in an oligopolistic industry successfully collude. What will be the outcome? Explain
What will be an ideal response?
Keynes was motivated to create a macroeconomic theory different from classical theory because
A) he believed in government intervention in the economy. B) he believed in the idea of the invisible hand. C) monetary policy was more important than the classicals acknowledged. D) classical theory was inconsistent with the data in the Great Depression.
Under the gold standard, gold discoveries in Alaska and South America led to
a. both c and d b. a decrease in the domestic money supply c. inflation d. an increase in the domestic money supply e. deflation
If there is an expansionary gap in the short run, the adjustment to the long-run equilibrium involves expansion of aggregate demand
Indicate whether the statement is true or false