Wages often respond slowly to changes in output.
The demand curve that a monopolist faces
The money demand curve indicates the total quantity of money demanded in the
economy at each
a. price level
b. level of GDP
c. quantity of money supplied
d. level of income
e. interest rate
To judge the size of government debts and deficits, we should use real values.
Molly needs 30 minutes to wash the car and 45 minutes to mow the lawn. Renee needs
1 hour to wash the car and 2 hours to mow the lawn. Which of the following statements
is correct?
In mid-2009, publicly held debt was approaching ______ and total debt was
approaching ______ .
a. $1 trillion; $12 trillion.
b. $3 trillion; $6 trillion.
c. $12 trillion; $7 trillion.
d. $7 trillion; $12 trillion.
e. $12 trillion; $12 trillion.
If consumers enjoy an increase in wealth due to stock market gains, which of the
following combinations of events will mostly likely take place?
a. A downward shift of the aggregate expenditure line and a rightward shift of the AD
curve
b. A downward shift of the aggregate expenditure line and a rightward shift of the AD
curve.
c. An upward shift of the aggregate expenditure line and a leftward shift of the AD
curve.
d. An upward shift of the aggregate expenditure line and a rightward shift of the AD
curve.
e. An upward shift of the aggregate expenditure line and no shift in the AD curve.
One reason why individuals with greater ability often receive higher wage rates is that
they
The economy’s self-correcting mechanism
a. prevents the economy from ever being in disequilibrium
b. guides the economy to full employment in the long run
c. maintains a steady long-run price level
d. is a short-run adjustment process
e. is controlled by the Fed
Reducing business taxes or providing specific investment incentives can shift the
demand for loanable funds curve
a. rightward, slow the growth of the capital stock, and improve the standard of living
b. rightward, speed the growth of the capital stock, and improve the standard of living
c. leftward, speed the growth of the capital stock, and reduce the standard of living
d. rightward, speed the growth of the capital stock, and reduce the standard of living
e. leftward, slow the growth of the capital stock, and reduce the standard of living
Since the late 1970s, economic growth has
a. occurred at a rapid pace compared to the period 1950-1973
b. improved living standards across the entire population
c. maintained approximately constant living standards across the entire population
d. improved the living standards of less-skilled workers while highly skilled workers
have become worse off
e. improved the living standards of highly skilled workers while less-skilled workers
have become worse off