Author Question: If a natural disaster destroys some of the capital stock, then the classical model predicts a. ... (Read 78 times)

lidoalex · **on:** Jun 30, 2018

If a natural disaster destroys some of the capital stock, then the classical model predicts

a. labor demand, real wages, and output will fall.
b. labor demand and real wages will rise, output will fall.
c. the labor market remains unchanged but output falls.
d. None of the above

Question 2

Transfer payments, like Social Security, are known as entitlements since ________.

A) they are locked up by earlier legislation
B) the individuals who receive these payments are poor and deserve our support
C) the individuals who receive these payments made payments to the federal government in excess of the monies they draw from the system
D) these monies tend to rise in an economic downturn