Assume investment is possible. Which of the following will decrease the supply of current consumption?
a. Decreased productivity of capital.
b. A plague that kills half of the economy's laborers.
c. Increased productivity of capital.
d. A temporary rise in people's wealth.
c. Increased productivity of capital.
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When the price level falls, the ________ curve for nominal money ________, and interest rates ________, everything else held constant
A) demand; decreases; fall B) demand; increases; rise C) supply; increases; rise D) supply; decreases; fall
Which of the following reflects diseconomies of scale?
a. Marginal product decreases as output increases. b. Short-run marginal cost increases as output increases. c. Long-run marginal cost increases as output increases. d. Short-run average cost increases as output increases. e. As output doubles, long-run total cost more than doubles.