A decision to postpone commercial development of an undisturbed parcel shows an example of what type of economic benefits?

By the accelerator hypothesis, if a firm's actual sales jump in one period to a higher maintained level, that firm's replacement investment

A) also jumps in one period to a higher maintained level. B) gradually drifts upward to a higher maintained level. C) jumps upward and then falls back to zero. D) jumps upward and then falls back part of the way.

Which of the following best explains the cause of the change in the unemployment rate at the end of a recession?

A) Firms rapidly hire new workers at the first sign of an increase in demand for their goods. B) Firms are hesitant to rehire laid-off workers as they continue to operate below capacity. C) Discouraged workers begin to return to the labor force, causing the unemployment rate to fall. D) Frictionally unemployed workers find it easier to gain employment, lowering the natural rate of unemployment.