Answer the following questions true (T) or false (F)
1. Inflation usually increases during a recession and decreases during an expansion.
2. The process a firm uses to turn inputs into outputs of goods and services is called technology.
3. If a firm experiences positive technological change, it is able to produce more output using the same inputs.
1. FALSE
2. TRUE
3. TRUE
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If there is a major problem in a country that leads to the rapid withdrawal of foreign investment, this is known as
A) adverse selection crisis. B) moral hazard. C) international financial crisis. D) portfolio investment crisis.
Suppose real GDP is currently $12.5 trillion and potential real GDP is $13 trillion. If the president and Congress increased government purchases by $500 billion, what would be the result on the economy?
What will be an ideal response?
According to new classical economics, fiscal policy can change equilibrium real GDP only if it changes the price level or one of the determinants of aggregate supply, and people expect this change
a. True b. False Indicate whether the statement is true or false
The marginal utility of a unit of good Y to Jane is
a. the additional utility that Jane gets from consuming one more unit of Y. b. defined in money terms as the minimum amount Jane is willing to pay for that additional unit of Y. c. defined in money terms as the maximum amount Jane is willing to pay for all the Y she buys except that additional unit. d. All of the above are correct.