Consider the two graphs above. Suppose that businesses expect to hire more workers. This would ________ the desired level of the capital stock, as depicted in graph ________

A) increase; B
B) increase; A
C) decrease; B
D) decrease; A


B

Economics

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In an open economy with flexible exchange rates, monetary policy affects consumption and investment by changing the ________ and affects net exports by changing the ________.

A. growth of domestic real GDP; growth of foreign real GDP B. inflation rate; unemployment rate C. real interest rate; exchange rate D. exchange rate; real interest rate

Economics

Explain briefly PPP and IRP. Why might the latter hold better than the former over time?

What will be an ideal response?

Economics

If the reserve requirement is 20 percent and a new deposit of $10,000 in cash is made by a customer to their checking account, by how much are excess reserves increased?

a. $10,000 b. $8,000 c. $4,000 d. $2,000

Economics

The reservation wage is

A) the wage that an employer must pay workers to reduce turnover to a reasonable level. B) the wage that ensures a laid-off individual will wait for re-hire, rather than find another job. C) the lowest wage firms are allowed by law to pay workers. D) the wage offer that will end a labor-strike. E) none of the above

Economics