What is true of both expansions and recessions?
a. There is a poorer than normal match between workers and their jobs.
b. The labor market clears.
c. The economy operates at its potential output.
d. Cyclical unemployment is zero.
e. None of the above.
The change in total utility arising from a one-unit increase in consumption of a good is
referred to as
In what way is the result of an excise tax imposed on either demanders or suppliers
similar to the result of a price ceiling?
Which of the following types of bond typically has the highest yields? (The letters are
Moody’s ratings.)
The Employment Act of 1946 directed the federal government to pursue the three
objectives of maximizing employment, production, and purchasing power.
For the total product curve shown in Figure 7-3, for which unit of labor is the marginal
product 20 units of output?
Using the table below, calculate GDP for a particular year.
Based on the above information, GDP in this year was
a. $4,100
b. $4,300
c. $4,400
d. $4,600
e. $4,900
The impact of saving on the economy is
a. always beneficial
b. always harmful
c. beneficial in the short run, but not in the long run
d. beneficial in the long run, but not necessarily in the short run
e. neutral in both the short run and the long run
Which of the following is a major macroeconomic goal?
a. Low prices
b. Fair prices
c. Pure competition
d. Low unemployment
e. High prices
Which factors led to the large rise in the government’s budget deficit in the early 1980s?
a. The Clinton Administration’s health care program
b. A cutback in military spending
c. An income tax increase
d. A build up in military spending
e. A large and unprecedented economic expansion
Which of the following is true about the short-run Phillips curve?
a. The Fed can only shift the curve in the short run.
b. In the short run, the Fed can shift the curve, but in the long run, the Fed can only
move along it.
c. In both the short run and the long run, the Fed can only shift the curve, it can never
move along the curve.
d. In both the short run and the long run, the Fed can only move the economy along the
curve; it can never shift the curve.
e. In the short run, the Fed can move the economy along the curve, but in the long run,
the Fed can only chose which short run Phillips curve to be on.
Purchases of stocks and bonds are examples of investment spending.
At each level of income, net taxes reduce disposable income, thereby reducing
consumption spending.
Consider an economy in which all labor markets are perfectly competitive, all workers
are equally able to do any job, and the nonwage attributes of all jobs are equally
attractive to all workers. Which of the following would occur in a labor market where
the current wage rate exceeds wage rates in alternate markets?
If a market is dominated by a few large, interdependent firms, it is said to be a(n)
