A temporary increase in government spending that leads to only a small decline in lifetime wealth likely shifts the output demand curve to the A) right by more than the rightward shift in output supply. B) right by less than the rightward shift in output supply. C) left by more than the leftward shift in […]
Date: September 10th, 2020
The goal of the representative firm is to A) hire as much labor as possible. B) maximize revenue. C) minimize labor costs. D) maximize profits. ANSWER D
Date: September 10th, 2020
In the U.S., government expenditure accounts for a. 10% of GDP b. 20% of GDP c. 40% of GDP d. government expenditure is not included in GDP ANSWER B
Date: September 10th, 2020
In a closed economy ________. A) investment equals consumption B) investment equals savings C) saving equals consumption D) exports are greater than imports ANSWER B
Date: September 10th, 2020
The equation for the balanced budget multiplier can be written as a. (1/1 – b) – (b/1 – b). b. (1/1 + b) + (− b/1 – b). c. (1/1 – b) + (b/1 + b). d. (1/1 + b) – (b/1 + b). ANSWER C
Date: September 10th, 2020
Although most slaves came to the colonies before 1776, the majority of other types of labor came to North America voluntarily. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
According to the classical model, workers chose a level of labor that equates the a. real wage and marginal product of labor. b. nominal wage and marginal product of labor. c. the marginal utility of consumption and the marginal disutility of lost leisure. d. the marginal utility of consumption with the real wage. ANSWER […]
Date: September 10th, 2020
When drawn against the real interest rate, the output demand curve shifts to the right when A) current total factor productivity z increases. B) current total factor productivity z decreases. C) future total factor productivity z’ increases. D) future total factor productivity z’ decreases. ANSWER C
Date: September 10th, 2020
If savings does not depend upon the interest rate, then a. the IS curve is vertical. b. the IS curve is horizontal. c. the LM curve is horizontal. d. the IS curve is still downward sloping. e. none of the above. ANSWER D
Date: September 10th, 2020
European agricultural practices perfectly served the colonists farming in the New World. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
