The flexible accelerator theory
A) recognizes that the desired capital-output ratio is not a constant.
B) assumes that firms can make this period's actual capital stock equal to the desired capital stock.
C) sets this period's expected output equal to last period's actual output.
D) recognizes that a constant fraction of the capital stock is replaced each period.
A
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The wage rate is the price of a unit of labor. What happens to the quantity of labor supplied if the wage rate increases?
A. It increases. B. It decreases. C. It does not change. D. Uncertain-economic theory has no answer to this question.
Monetary policy refers to the actions taken by the Treasury Department to set the level of the money supply
Indicate whether the statement is true or false
If the loss-minimizing output for a perfectly competitive firm is zero, then, at all other output levels,
a. price must be greater than average variable cost b. the marginal cost curve must slope downward c. marginal cost is less than marginal revenue d. total revenue is less than total variable cost e. total revenue is less than average variable cost
Which of the following is treated differently in computations of GNP as compared with GDP?
A. Intermediate goods. B. The value of services performed by housewives. C. Goods produced by U.S. firms located in foreign countries. D. Sales in the underground economy.