Refer to the above figures. Which panel(s) represent economic growth? A) Panels A and C only B) Panel D only C) Panel A only D) Panels B and D only ANSWER A
Date: September 2nd, 2020
Labor productivity is computed as A) real GDP divided by population. B) real GDP divided by the number of workers. C) per capita real GDP divided by the number of workers. D) per capita real GDP divided by population. ANSWER B
Date: September 2nd, 2020
The aggregate supply curve cannot tell us A) how the total dollar values of spending will ultimately be divided between output and prices. B) how changes in the price level affect quantity demanded of all commodities. C) what the effect of changes in interest rates will be on real GDP. D) anything about the quantity […]
Date: September 2nd, 2020
The values on the axes of the long-run aggregate supply diagram are A) real GDP and interest rates. B) real GDP per year and the price level. C) nominal GDP and the price level. D) real GDP and nominal GDP. ANSWER B
Date: September 2nd, 2020
Which of the following variables can be used to measure labor productivity? A) real GDP B) number of labor hours C) number of workers D) all of the above ANSWER D
Date: September 2nd, 2020
When the production possibilities curve shifts outward, A) the price level rises in the long run. B) the long-run aggregate supply curve is unchanged. C) the long-run aggregate supply curve shifts to the left. D) the long-run aggregate supply curve shifts to the right. ANSWER D
Date: September 2nd, 2020
All of the following are assumptions of the classical model EXCEPT A) inflexible wages. B) self-interest of economic actors. C) pure competition. D) absence of money illusion. ANSWER A
Date: September 2nd, 2020
The majority of evidence points to the fact that, in the last decade in the United States, labor productivity has A) stayed the same. B) increased. C) decreased in the manufacturing sector but increased in the service sector. D) decreased. ANSWER B
Date: September 2nd, 2020
One tenet of classical economics is that A) the role of the government should be limited, since the market will always be self-correcting. B) the government should set a minimum wage slightly above the natural market equilibrium rate. C) the government should intervene whenever necessary to avoid any unemployment. D) wages and prices are “sticky […]
Date: September 2nd, 2020
The aggregate supply curve shows A) the total of all planned production for an economy. B) that real GDP can only increase when the price level increases. C) what an economy can produce if resource prices are constant. D) the various quantities of goods consumers will purchase. ANSWER A
Date: September 2nd, 2020
