Suppose, due to the effects of a military conflict that has ended, that a country experiences a large reduction in its capital stock. Assume no other effects of this event on the economy. Which of the following will tend to occur as the economy adjusts to this situation?
A) a relatively low growth rate for some time
B) a relative high growth rate for some time
C) zero growth for some time, followed by a gradually increasing growth rate
D) positive growth, followed by negative growth, and then zero growth
E) none of the above
B
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Refer to Figure 12-2. Suppose the firm is currently producing Q2 units. What happens if it expands output to Q3 units?
A) It makes less profit. B) It will be moving toward its profit maximizing output. C) Its profit increases by the size of the vertical distance df. D) It incurs a loss.
Fred lost his factory job, replaced by welding robots. He is now going to technical school to learn computer repair because he cannot find a similar job to the one he lost. Fred is: a. Frictionally unemployed. b. Structurally unemployed. c. Cyclically unemployed
d. Not unemployed.