Phase of the business during which the economy is growing faster than usual
What will be an ideal response?
economic expansion
You might also like to view...
Suppose each worker must use only one shovel to dig a trench, and shovels are useless by themselves. In the short run, an increase in the price of shovels will result in
A) fewer shovels being purchased. B) more workers being hired. C) a decrease in the firm's output. D) no change in the firm's output.
Education is subsidized because it generates beneficial externalities
a. True b. False Indicate whether the statement is true or false
Consider the following:
(i) Describe the indifference curves that are used to represent homothetic preferences. (ii) Assume preferences are homothetic and consider the representative agent. Suppose a technological advance increases people's current and future endowments. Under what circumstances would the technological advance have no effect on the interest rate? Under what circumstances would the technological advance cause an increase in the interest rate? Explain.
The social surplus in a market is $50. If another economic agent enters the market such that the marginal cost he incurs is $10 and the marginal benefit he receives from the trade is $5, then which of the following statements is true?
A) The social surplus will remain the same. B) The social surplus will increase by $5. C) The social surplus will decrease by $5. D) The social surplus will increase by $10.