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Author Question: The three oil shocks the U.S. experienced in 1973-1974, 1979-1980 and 2007-2008 had a consistent ... (Read 121 times)

rl

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on: Jun 30, 2018
The three oil shocks the U.S. experienced in 1973-1974, 1979-1980 and 2007-2008 had a consistent result ________.
 
  A) a decline in the MPK
  B) a decline in the real rental price of capital
  C) a decline in stock prices
  D) all of the above
  E) none of the above

Question 2

Equilibrium market prices for capital and labor are 10 and 8, respectively. Then, the economy experiences one or more supply shocks, so that the marginal product of capital is 9, and the marginal product of labor is 6.
 
  Assuming that the available quantities of capital and labor are fixed, which of the following is (are) likely to decrease as the economy approaches its new equilibrium? A) economic profits
  B) real rental price of capital
  C) total output
  D) the quantity of capital in use
  E) none of the above


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briseldagonzales

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Reply #1 on: Jun 30, 2018
Answer to Question 1

D

Answer to Question 2

B


rl

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Reply #2 on: Jun 30, 2018
Thank you :)


briseldagonzales

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Reply #3 on: Jun 30, 2018
Happy to help you


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