Consider the market for capital equipment. Suppose the market price of firms' output decreases. Holding all else constant, the equilibrium quantity of capital equipment will
a. increase.
b. decrease.
c. not change.
d. It is not possible to determine what will happen to the equilibrium quantity of capital equipment.
b
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During the 1990s the household savings rate in the United States as measured by NIPA
A) increased dramatically from two percent to almost six percent. B) fell sharply and was only 0.7% by the year 2004. C) increased only slightly because the federal budget deficit was finally eliminated. D) fell to two percent when a federal budget surplus appeared.
The airline and trucking industries came under regulation during the:
a. 1920s. b. 1930s. c. 1960s. d. 1970s.
Which of the following is true?
a. Structural unemployment is caused by the fact that it takes a short time to search for a job. b. Cyclical unemployment is caused by the fact that it takes a short time to search for a job. c. Frictional unemployment is caused by a lack of skills or information about jobs. d. Structural unemployment is caused by a lack of skills or information about jobs. e. Cyclical unemployment is caused by a lack of skills or information about jobs.
If policymakers impose import restrictions on clothing, the U.S. trade deficit will shrink
a. True b. False Indicate whether the statement is true or false