The primary benefit to the macroeconomy of increasing government spending is a(n)
A. decrease in the price level.
B. decrease in real GDP.
C. increase in the price level.
D. decrease in the unemployment rate.
Answer: D
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Burger King is paying $9 an hour to its workers. If the expected inflation rate equals the actual inflation rate and both are 10 percent a year, then to keep the real wage rate constant in a year the money wage rate must
A) fall to $8.10 an hour. B) rise to $9.45 an hour. C) rise to $10.00 an hour. D) rise to $9.90 an hour. E) stay at $9.00 an hour.
According to the gravity model, a characteristic that tends to affect the probability of trade existing between any two countries is
A) their cultural affinity. B) the average weight/value of their traded goods. C) their colonial-historical ties. D) the distance between them. E) the number of different product varieties produced by their industries.
Under the Clayton Act,
a. the same person cannot sit on the boards of directors of competing corporations. b. mergers are illegal. c. monopoly is illegal. d. the Sherman Antitrust Act was repealed.
An elastic supply curve is characteristic of which of the following?
a. A constant cost industry b. An increasing cost industry c. A decreasing cost industry d. A monopolized industry