In the classical model, desired saving A) is inversely related to real income. B) exceeds investment. C) is equal to desired investment. D) is less than desired investment. ANSWER C
Date: September 2nd, 2020
The long-run aggregate supply curve assumes that A) the unemployment rate is more than 9 percent. B) there is no government purchasing of goods and services. C) only laborers are fully employed. D) all factors of production are fully employed. ANSWER D
Date: September 2nd, 2020
In economics, investment is defined as A) disposable income plus consumption. B) disposable income minus consumption. C) the spending by businesses on capital goods and inventories. D) the spending by households on human capital and durable goods. ANSWER C
Date: September 2nd, 2020
An increase in human capital will tend to cause which of the following? A) increase labor productivity B) increase the standard of living C) increase economic growth D) all of the above ANSWER D
Date: September 2nd, 2020
Why is the long-run aggregate supply curve a vertical line? A) At that level of real GDP, the production costs are at their lowest level. B) At that level of real GDP, production costs have fully adjusted to price changes. C) At that level of real GDP, the unemployment rate is 0 percent. D) At […]
Date: September 2nd, 2020
Which of the following is NOT a flow variable? A) saving B) consumption C) investment D) savings ANSWER D
Date: September 2nd, 2020
Which one of the following does NOT contribute to economic growth? A) increases in the price level B) the growth of capital and labor productivity C) the growth of the labor force D) the growth of the capital stock ANSWER A
Date: September 2nd, 2020
With respect to unemployment, the classical model states that A) unemployment of any kind cannot exist. B) involuntary unemployment will always exceed voluntary unemployment. C) unemployment fluctuates with the interest rate. D) only voluntary unemployment exists. ANSWER D
Date: September 2nd, 2020
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
