Refer to the graph below. Assume that the economy is in initial equilibrium where AD1 intersects ASLR1. If the economy experiences a change in technology that increases productivity and resources, then real-business-cycle theory would suggest that this macroeconomic instability would eventually produce a new equilibrium at point:
A. B
B. C
C. D
D. E
B. C
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Refer to the table below. The expected value of the price of the input in Country A is ________ the expected value of the input in Country B and the extent of the variation in price in Country A is ________ than the extent of variation in price in Country B.
The above table provides the probability distribution of price of an input next year in Country A and Country B.
A) the same as; greater
B) less than; less
C) the same as; less
D) greater than; greater
A profit-maximizing monopolist will continue expanding output as long as:
a. marginal revenue exceeds marginal cost. b. marginal revenue is positive. c. the cost of producing an additional unit exceeds the marginal revenue derived from the unit. d. economic profit is more than zero.
Which of the following laws increased competition among financial institutions and gave the Fed greater control over nonmember banks?
a. The Federal Reserve Act. b. The Equal Credit Opportunity Act. c. The Monetary Control Act. d. The Thrift Bailout Bill.
The portion of the aggregate supply curve that is a positive function of the general price level represents excess capacity and unemployed resources
a. True b. False Indicate whether the statement is true or false