In the expansion phase of a business cycle:
a. The inflation rate decreases, but productive capacity increases
b. Employment increases, but output decreases
c. Employment and output increase
d. The inflation rate and productive capacity decrease
c. Employment and output increase
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"As the price of personal computers continues to fall, demand increases." This headline is inaccurate because:
A. a change in the price of personal computers shifts the supply curve. B. a falling price of personal computers increases the quantity demanded, not demand. C. the statement is backwards: increased demand leads to lower prices. D. a change in the price of personal computers shifts the demand curve.
Free access and unrestricted mining of iron soon led to the depletion of the once abundant iron ores in Rockland. As a result, several economic activities were adversely affected
What caused the overexploitation of these resources when their conservation could have benefited all consumers?
In a quasi-experiment
A) quasi differences are used, i.e., instead of ?Y you need to use ( - λ × ), where 0 < λ < 1. B) randomness is introduced by variations in individual circumstances that make it appear as if the treatment is randomly assigned. C) the causal effect has to be estimated through quasi maximum likelihood estimation. D) the t-statistic is no longer normally distributed in large samples.
When the interest rate rises, the demand for loanable funds falls and the supply of loanable funds rises.
Answer the following statement true (T) or false (F)