The immediate determinants of investment spending are the:
A. expected rate of return on capital goods and the real interest rate.
B. level of saving and the real interest rate.
C. marginal propensity to consume and the real interest rate.
D. interest rate and the expected price level.
A. expected rate of return on capital goods and the real interest rate.
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Some laborers are productive, others are less so. How do we measure labor productivity? Why are there differences in labor productivity? a. Labor productivity is capital stock divided by labor, and differences may be explained by differences in the capital-labor ratio
b. Labor productivity is output divided by capital stock, and differences may be explained by differences in the capital-output ratio. c. Labor productivity is capital divided by GDP, and differences may be explained by differences in the capital-output ratio. d. Labor productivity is the change in labor divided by GDP, and differences may be explained by differences in the capital-output ratio. e. Labor productivity is GDP divided by labor, and differences may be explained by differences in the capital-labor ratio.
A supply curve that is parallel to the price axis is
A. unitary elastic. B. perfectly elastic. C. perfectly inelastic. D. relatively inelastic.