Which of the following creates job rationing?
A) The real wage rate is below the equilibrium level.
B) The real wage rate is equal to the equilibrium level.
C) An increase in unemployment benefits.
D) The real wage rate is above the equilibrium level.
E) Job search decreases.
D
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When the Fed ________ the federal funds rate, the opportunity cost of firms' investment ________ and so the quantity of investment ________
A) increases; falls; increases B) decreases; falls; decreases C) increases; rises; decreases D) decreases; rises; decreases E) increases; rises; increases
The sum of all income payments made to productive resources is national income
Indicate whether the statement is true or false
An increase in the money supply might indicate that the Fed had
a. purchased bonds to increase banks reserves. b. purchased bonds to decrease banks reserves. c. sold bonds to increase banks reserves. d. sold bonds to decrease banks reserves.
Which of the following statements is true?
A. One benefit with any fixed-bundle index as a measure of the cost of living is that it does not account for substitutions that consumers might make in response to price changes. B. The consumer price index somewhat understates changes in the cost of living. C. The producer price index is considered to be a leading indicator of future inflation rates. D. The best overall indicator of inflationary pressures in the economy is the CPI.