An increase in the demand for a product will cause output to:
a. increase and the demand for the resources used to produce the product to rise
b. increase and the demand for the resources used to produce the product to fall.
c. decline, while the demand for the resources used to produce the product remains constant.
d. increase and the price of resources used to produce the product to increase if their supply is perfectly elastic.
a
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If a bank has $50 million in rate-sensitive assets and $20 million in rate-sensitive liabilities then
A) an increase in interest rates will reduce bank profits. B) a decrease in interest rates will reduce bank profits. C) interest rate changes will not impact bank profits. D) a decrease in interest rates will increase bank profits.
Changes in the capital stock are caused by changes in ________
A) the quantity of labor B) depreciation and investment C) depreciation and entrepreneurship D) depreciation and the quantity of labor