Which of the following would be considered a variable input in the long run?
a. The size of a firm's plant
b. The acreage of an apple farmer's orchard.
c. The production capacity of a machine.
d. All of the above.
d
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If a country lacks ________, economic growth ________
A) a democratic form of government; cannot occur B) a proper incentive system; cannot occur C) pure capitalism; will be slower compared to other countries D) a proper incentive system; will occur at a pace suggested by the new growth theory E) economic freedom; will increase at a faster pace
"Complete" crowding out of fiscal policy occurs when the
A) LM curve is horizontal. B) LM curve is upward-sloping. C) LM curve is vertical. D) IS curve is vertical.
How is a rise in confidence reflected in the aggregate supply/aggregate demand model?
a. Because a rise in confidence is associated with higher consumption and investment demand, it will lead to an inward shift in the AD curve and shift equilibrium from E0 to E1, a higher quantity of output and a higher price level. b. Because a rise in confidence is associated with higher consumption and investment demand, it will lead to an outward shift in the AD cur and shift equilibrium from E0 to E1, a higher quantity of output and a higher price level. c. Because a rise in confidence is associated with higher consumption and investment demand, it will lead to an outward shift in the AD curve and shift equilibrium from E0 to E1, a higher quantity of output and a lower price level. d. Because a rise in confidence is associated with higher consumption and investment demand, it will lead to an inward shift in the AD cur and shift equilibrium from E0 to E1, a higher quantity of output and a lower price level.
According to Baumol and Blinder, recognition of the usefulness of markets
a. labels a person as an apologist (defender) of capital. b. extends to some socialist countries, for example, China. c. should make totally free markets good for any society. d. makes one a radical.