What happens to the AD curve when firms initially have a low level of physical capital?
What will be an ideal response?
Ans: The incentive to engage in investment spending is high, holding everything else constant, the AD curve shifts to the right when firms experience low levels of capital.
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Which of the following would be most likely to cause the per capita income of less-developed countries to rise?
a. Development of strong labor unions. b. More rapid population growth. c. Investment expenditures that enhance the human capital of labor force participants. d. An international minimum wage law.
What was the first year that Social Security revenues fell below Social Security retirement payments?
A. 2010. B. As of 2015, Social Security revenues continue to exceed Social Security retirement payments. C. 2009. D. 2014.
If marginal productivity is decreasing as more labor is hired, then average productivity must be decreasing as well
Indicate whether the statement is true or false
The chairman of the Federal Reserve's Board of Governors
A) controls the agenda of the Federal Open Market Committee meetings. B) is the main point of contact between the Fed and the President of the U.S. C) receives frequent background briefings on monetary policy issues from a large staff of economists and technical experts. D) All of the above answers are correct.