Which of the following are required for economic growth?
i. more goods and services produced per hour of work
ii. an increase in the average hours of labor per person
iii. an increase in prices
A) i only B) ii and iii C) ii only D) i and iii E) i and ii
E
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If manufacturer's new orders received for consumer goods are starting to fall, real GDP is most likely
A) beginning to rise. B) bottoming out. C) getting ready to decrease. D) already decreasing.
Explain the difference between Microeconomics and Macroeconomics
What will be an ideal response?
To say that government intervenes in the economy to promote efficiency is to say that government is attempting to
a. create a more fair distribution of income. b. change the way in which the economic pie is divided. c. enlarge the economic pie. d. All of the above are correct.
??Exhibit 16A-2 Macro AD/AS Models
?
In Panel (b) of Exhibit 16A-2, the economy is initially in short-run equilibrium at real GDP level Y1 and price level P2. Classical theory argues that:
A. SRAS will shift to leftward and establish full employment at P3Yp without government intervention. B. higher wages will result in a rightward shift of SRAS. C. long-run equilibrium will be established at Yp and P1. D. lower wages will result in a leftward shift of SRAS.