When people's incomes increase, the demand for a good increases. The good is called

Blueland is a small island country which specializes in the production of yachts. It has a Cobb-Douglas aggregate production function

i) How will the production of yachts get affected if the technology used for production in Blueland improves? ii) How will Blueland's output get affected if both efficiency units of labor and capital stock increase by 12.5% but the level of technology remains unchanged?

Which of the following would indicate the beginning of a recessionary phase in an economy?

a. Many new firms starting up b. Stock prices improving c. Businesses slowing down d. Demand for real estate picking up e. Orders for new equipment increasing