The costs that a firm incurs when it changes its production level are adjustment costs.
Answer the following statement true (T) or false (F)
True
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Which of the following equations best represents a Cobb-Douglas production function?
A) Y = AK1L1 B) Y = AK3/4L1/4 C) Y = AK1/3L3 D) Y = AK2/3L3/2
If the Fed increases the required reserve ratio at a time when banks are holding excess reserves, then: a. the Fed's aim is to increase the money supply
b. banks are likely to lend out more money than they would if the Fed left the reserve ratio alone. c. banks are likely to earn higher profits than they would. d. the money supply will not increase as much as it would if the Fed left the reserve ratio alone. e. the Fed's aim is to conduct open market operations without changing the money supply.
One of the sources of cyclical unemployment is the downward rigidity of wages
a. True b. False Indicate whether the statement is true or false
What percentage of Aggregate Expenditure is consumption in recent decades?
a. 22% b. 15% c. 32% d. 70%