The phenomenon of scarcity stems from the fact that
a. most economies' production methods are not very good.
b. in most economies, wealthy people consume disproportionate quantities of goods and services.
c. governments restrict production of too many goods and services.
d. resources are limited.
d
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According to the new Keynesian sticky-price theory, a rise in aggregate demand results in ________ price level in the near term and in ________ price level in the longer term
A) a higher; an unchanged B) an unchanged; a higher C) a lower; an unchanged D) a lower; a higher
Imagine a $2,000 investment that raises the economy's capital stock from $20,000 to $22,000 . It changes the capital-labor ratio from $200 to $220 . Economists refer to such increases in the capital-labor ratio as
a. capital deepening b. capital accretion c. capital productivity d. capital-labor output shocks e. capital stockpiling
The human capital model assumes that
A. education is a productive investment that raises total output. B. education does not change potential productivity, but it does save resources by reducing sorting costs for employers. C. the educational system is a very expensive process to legitimize the intergenerational transmission of privileged status. D. such factors as the love of learning should be included in the analysis.
Which of the following is NOT true with fixed exchange rates and perfect capital mobility?
A. Sterilization is impossible. B. Monetary policy is very powerful only in the short run. C. Monetary policy is not effective in either the long run or the short run. D. Fiscal policy is very powerful.