If the cost of labor increases the isocost line will
A) stay the same.
B) shift outward in parallel fashion.
C) rotate inward around the point where only capital is employed in production.
D) shift inward in parallel fashion.
C
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If the expected path of 1-year interest rates over the next four years is 5 percent, 4 percent, 2 percent, and 1 percent, then the expectations theory predicts that today's interest rate on the four-year bond is
A) 1 percent. B) 2 percent. C) 3 percent. D) 4 percent.
Which of the following is most likely to increase productivity growth, as measured using GDP statistics?
a. Reduced capital formation b. Decreased human capital c. Increased research and development d. Increased government regulation e. Higher price of a raw material
The U.S. economy in 2009 was characterized by an excess level of output. This corresponds to a recessionary gap
a. True b. False Indicate whether the statement is true or false
Refer to the accompanying figure. At a price of $9, there will be:
A. an excess demand of 5 units. B. an excess supply of 5 units. C. an excess supply of 6 units. D. an excess demand of 1 unit.