New classical economists contend that an unexpected increase in the money supply will:
a. increase the unemployment rate in the short run.
b. reduce the unemployment rate in the short run.
c. cause no short-run change in the unemployment rate.
d. reduce the unemployment rate in the long run.
e. increase the unemployment rate in the long run.
b
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Holding all other factors constant and using the midpoint method, if a tractor manufacturer increases production from 80 to 100 units when price increases by 15 percent, then supply is
a. inelastic, since the price elasticity of supply is equal to 0.68. b. inelastic, since the price elasticity of supply is equal to 1.48. c. elastic, since the price elasticity of supply is equal to 0.68. d. elastic, since the price elasticity of supply is equal to 1.48.
A production possibilities curve will shift outward or to the right for all of the following reasons EXCEPT
A) an increase in the unemployment rate. B) an increase in the quality of the labor force. C) an improvement in production technology. D) a discovery of a new source of renewable energy.