Question

To cut​ inventories, firms produce​ ________ and real GDP​ ________, which​ ________ people's incomes.  

A.​more; falls; lowers

B.​less; rises; raises

C.​more; rises; raises

D.​less; rises; lowers

E.​less; falls; lowers

Increases in human capital can come

A.from employing more machinery.

B. only from on−the−job experience.

C. from nowhere because whatever human capital an individual possesses is what he or she was born with.

D.only from formal schooling.

E.from formal education and on−the−job learning.

The aggregate supply curve shifts

A.rightward if the money wage rate rises.

B.leftward if potential GDP increases.

C.rightward if potential GDP decreases.

D.rightward if the money wage rate falls.

E.leftward if the aggregate demand curve shifts leftward.

Answer 1

a) To cut inventories the firms in the market will produce less and that will lower the real GDP and reduce people income, the answer is "E".

b) "E"

human resources can come from formal schooling and on the job training.

c) "D"

it will shift right if the money wages falls because that will reduce the production cost.