How would a $10 increase in per-unit input costs affect a price-taking firm's supply curve?
A. MC would increase by $10, and AC would decrease by $10.
B. AC would increase by $10, and MC would decrease by $10.
C. MC and AC would both decrease by $10.
D. MC and AC would both increase by $10.
D. MC and AC would both increase by $10.
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In the Solow growth model, if the level of investment is greater than depreciation at the initial capital-labor ratio , then ?k is ________ and the capital-labor ratio ________ toward the steady-state capital-labor ratio
A) greater than zero; increases B) greater than zero; decreases C) less than zero; increases D) less than zero; decreases
When the Federal Reserve System wants to increase the money supply, which of the following actions would the Fed choose?
a. It purchases U.S. government securities. b. It increases the discount rate. c. It increases the required reserve ratio. d. It sells bonds on the open market.