The long-run aggregate supply relationship refers to:
a. a time period long enough for the prices of both outputs and inputs to adjust to changes in the economy.
b. any time period of more than a year
c. a time period in which input prices can change, but output prices have not had time to adjust.
d. a time period in which output prices can change but input prices have not had time to adjust.
a
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Why does inflation cause problems in a society?
A) It gives people an incentive to hold money rather than spend it and provide income for others. B) It makes everything more expensive in real terms. C) People aren't able to anticipate it accurately. D) The cost of living rises for almost everyone in an inflation. E) For all of the above reasons.
An important explanation for the current account deficit and capital account surplus in the United States is that
a. we buy fewer goods from foreigners than they buy from us, and foreigners find the United States an attractive place to invest. b. we buy more goods from foreigners than they buy from us, and foreigners find the United States an attractive place to invest. c. we buy fewer goods from foreigners than they buy from us, and Americans find foreign countries an attractive place to invest. d. we buy more goods from foreigners than they buy from us, and Americans find foreign countries an attractive place to invest.
A computer is an example of human capital
a. True b. False Indicate whether the statement is true or false
As interest rates rise, a firm would
A. have lower expected costs of investment. B. be willing to pay less now to purchase the same number of future dollars. C. have increasing present value of expected earning. D. be willing to pay more now to purchase the same number of future dollars.