Starting from long-run equilibrium, an increase in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential
B. higher; higher
C. lower; higher
D. higher; potential
Answer: D
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Economists understand that using statistical discrimination
A. is never rational. B. means some individuals are discouraged from acquiring skills. C. is always illegal. D. All of the above
If long-term investments are increasing,
a. current consumption must be increasing. b. interest rates must be relatively low. c. interest rates must be relatively high. d. the people must be experiencing a "defective telescopic faculty."
Consider a hypothetical economy in which only computers and shoes are produced. If two resources are being used, labor and capital, then any increase in immigration in the long run:
a. will decrease wages in the shoe industry. b. will decrease wages in the computer industry. c. will increase wages in the shoe industry. d. will keep wages constant because marginal products do not change.
Federal Reserve increases in the Federal Funds rate in 2005 had little immediate impact upon the overheated housing market because
A. the yield curve became more steeply upward-sloping. B. long-term interest rates and short-term interest rates do not always move in lockstep. C. long-term interest increased as short-term interest rates increased. D. all of the options are correct.