Other things the same, if technology increases, then in the long run
a. both output and prices are higher.
b. output is higher and prices are lower.
c. output is lower and prices are higher.
d. both output and prices are lower.
b
You might also like to view...
What is the relationship between fiscal multipliers and the "zero lower bound"?
A) Fiscal multipliers cannot fall below zero. B) When monetary policy has hit the zero lower bound, fiscal multipliers are likely to be larger than normal. C) At the zero lower bound, a fiscal contraction is actually expansionary. D) At the zero lower bound, fiscal policy works by shifting the aggregate supply curve, rather than shifting the aggregate demand curve.
Suppose the probability of a near-new car being good is 0.4 while its probability of being a lemon is 0.6 . If risk-neutral consumers are willing to pay $14,000 if the car is in good condition and $8,000 if it is a lemon, a risk averse buyer who knows those probabilities would be willing to pay $10,400 for the car
Indicate whether the statement is true or false
Which of the following is a method by which a firm can obtain financial resources to invest in capital?
a. use of retained earnings b. borrowing from financial intermediaries c. selling stocks or bonds d. all of the above
Are returns to a single input and returns to scale one and the same? Explain