What is the difference between physical capital and human capital?
What will be an ideal response?
Physical capital includes manufactured goods which are used to produce other goods and services. Human capital refers to the accumulated education, training, and skills that workers possess.
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Suppose that real domestic output in an economy is 300 units, the quantity of inputs is 50, and the price of each input is $9. If the price of each input decreased from $9 to $7, productivity would:
A. remain unchanged and aggregate supply would increase. B. remain unchanged and aggregate supply would decrease. C. increase and aggregate supply would increase. D. decrease and aggregate supply would decrease.
A decrease in the federal funds rate is an indication that monetary policy is expansionary.
Answer the following statement true (T) or false (F)