At a level of real disposable income of $1,000, suppose consumption is $2,000. Given this information, we know with certainty that saving equals A) $2,000. B) $0. C) -$1,000. D) -$2,000. ANSWER C
Date: September 2nd, 2020
The formula for the computation of labor productivity is A) nominal GDP/number of workers. B) real GDP/number of workers. C) nominal GDP/population. D) real GDP/population. ANSWER B
Date: September 2nd, 2020
What is measured on the horizontal axis when we draw a graph of the long-run aggregate supply curve? A) production of consumer goods B) real GDP C) production of capital goods D) the price level ANSWER B
Date: September 2nd, 2020
According to classical theory, full employment in the labor market occurs A) only when actual expenditures are greater than desired expenditures. B) only when the economy has just experienced a demand shock. C) whenever aggregate demand is less than aggregate supply. D) at a wage rate at which quantity demanded equals quantity supplied. ANSWER […]
Date: September 2nd, 2020
The most important thing about higher labor productivity is that it means A) we can compete well with other nations. B) we are doing better than anyone else is. C) we can achieve a happier population. D) we can have a higher standard of living. ANSWER D
Date: September 2nd, 2020
Labor productivity is defined as A) the amount of workers per unit of input. B) the amount of input per worker. C) the increase in output per unit of machinery. D) the amount of output per worker. ANSWER D
Date: September 2nd, 2020
The long-run aggregate supply curve shifts right at the same time as A) the Laffer curve shifts upward. B) the production possibilities curve shifts inward. C) the production possibilities curve shifts outward. D) the inflation rate increases. ANSWER C
Date: September 2nd, 2020
Long-run aggregate supply and a country’s production possibility curve (PPC) A) are inversely related. B) are closely related. C) have no relationshi ANSWER B
Date: September 2nd, 2020
Which of the following is NOT a simplifying assumption in the simple Keynesian model? A) There is no foreign trade. B) Net investment and gross investment are equal. C) All profits are distributed to the business owners. D) Real disposable income equals government purchases of goods and services. ANSWER D
Date: September 2nd, 2020
In the classical model, what occurs if a wage of $20/hour results in unemployed workers? A) The wage rate will drop, more workers will be hired, and the unemployment rate falls. B) Producers will quickly create more jobs and hire the unemployed workers, so unemployment is short-lived. C) The workers will go on strike to […]
Date: September 2nd, 2020
