Suppose that real domestic output in an economy is 2400 units, the quantity of inputs is 60, and the price of each input is $30. If productivity increased such that 3000 units are now produced with the quantity of inputs still equal to 60, then per-unit production costs would:
A. decrease and aggregate supply would increase.
B. increase and aggregate supply would decrease.
C. remain unchanged and aggregate supply would remain unchanged.
D. decrease and aggregate supply would decrease.
Answer: A
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A) new Keynesianism; the new classical model B) the real business cycle model; Marxism C) the monetarist model; the Keynesian model D) rational expectations; monetarism
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A) It asks Congress to legislate new interest rates. B) It buys or sells government bonds on the open market to achieve the desired rate. C) It buys or sells dollars on the foreign exchange market to achieve the desired rate. D) It announces a new discount interest rate.
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b. How will economic growth affect unemployment? c. How will a consumer maximize his utility? d. What are the factors that determine the standard of living in a country?
The O in OLI theory stands for ownership, and the asset owned can be tangible or intangible
Indicate whether the statement is true or false