chapter 33 econ

chapter 33 econ - Jordan Holmes Period 5 April 5, 2010...

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Jordan Holmes Period 5 April 5, 2010 Chapter 33 1. Investment is more variable over the business cycle than consumer spending because consumers will always end up buying good. You would not want to invest in a recession, so instead you would spend that extra money. The most volatile would be durable goods due to the fact that people need services and non-durable good in some instances to function. 2. a. When the United States experiences a wave of immigration, the labor force increases, so long-run aggregate supply shifts to the right. b. When Congress raises the minimum wage to $10 per hour, the natural rate of unemployment rises, so the long-run aggregate-supply curve shifts to the left. c. When Intel invents a new and more powerful computer chip, productivity increases, so long-run aggregate supply increases because more output can be produced with the same inputs. d. When a severe hurricane damages factories along the East Coast, the capital stock is smaller, so long run aggregate supply declines. 3.
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chapter 33 econ - Jordan Holmes Period 5 April 5, 2010...

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