Capital saving nonneutral technical progress allows a firm to
A) produce more output with the same inputs.
B) use less capital and the same amount of other inputs to produce the same level of output.
C) use more capital to produce the same level of output.
D) use less capital and more of other inputs to produce the same level of output.
B
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If the Federal Reserve sells $1,000 in bonds and, as a result, the money supply decreases by $2,500, what is the required reserve ratio?
a. 0.4 b. 2.5 c. 0.5 d. 0.1 e. 0.2
If the labor supply and demand curves cross at a wage of $20,
a. a wage rate of $10 per hour would lead to an excess demand for labor b. a wage rate of $10 per hour would lead to an excess supply of labor c. that wage causes a high rate of cyclical unemployment d. employees are overpaid e. a wage rate of $10 per hour would mean there is a significant amount of structural unemployment