Consider the two graphs above. Suppose that technological progress is expected to reduce the future cost of capital goods. This would ________ the desired level of the capital stock, as depicted in graph ________.
A) increase; B
B) increase; A
C) decrease; B
D) decrease; A
Question 2
Discouraged workers are
A) those who have given up looking for work, even though they would like to be employed.
B) those who quit working because they are dissatisfied with their jobs.
C) those unmotivated workers who bring down a country's productivity.
D) those who would like to find a second job to supplement their income, but have not yet found one.
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