Why does increasing employment not necessarily increase living standards?
a. Productivity always increases as employment increases.
b. Living standards and employment are always positively related.
c. Increasing employment may not be accompanied by higher real wages
d. There is no upper limit to labor force participation.
e. Real wages are not adjusted for inflation.
The resource cost of inflation refers to
a. the opportunity cost of the resources spent coping with inflation
b. the redistribution of resources due to inflation
c. the lost purchasing power due to inflation
d. the lost real income due to inflation
e. the resources lost due to asking for higher nominal wage increase
Use the table below to find autonomous consumption
a. $100
b. $50
c. $150
d. $200
e. $1,050
In a perfectly competitive market, the
An increase in the price level will increase the interest rate, which will decrease
investment spending and shift aggregate demand to the left.
Ricardian equivalence implies a tax multiplier of zero.
Which of the following is a common reaction to an increase in the interest rate?
a. A decline in oil prices
b. A war
c. A decrease in spending on new homes
d. An expansion
e. An increase in military spending
The secondary market for bonds is
a. where new issues of bonds are purchased
b. of less importance to our economy than is the primary market
c. of less importance to our economy than the stock market
d. where bonds that were issued in previous periods are purchased
e. a key determinant of the money supply
If labor is the only variable input, a firm’s labor demand curve is
A group of buyers and sellers with the potential to trade with each other is known as
a(n)
Most changes in the money supply are the consequence of a change in the required
reserve ratio.