The short-run aggregate supply line is:
A. upward sloping.
B. downward sloping.
C. horizontal at the current rate of inflation.
D. vertical at the economy's potential output.
Answer: C
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Labor productivity is commonly measured as
A) the number of workers divided by real GDP. B) the change in real GDP divided by change in number of workers. C) nominal GDP divided by number of workers. D) real GDP divided by number of workers.
To incentivize a salaried manager at a company store to work harder, the management should
a. Offer the manager the franchise b. Offer the manager a raise c. Centralize all decision-making d. None of the above
If the Fed were to purchase euros for dollars and at the same time sell U.S. Treasury securities in the open market, this would be an example of:
A. the Fed not changing their balance sheet at all. B. the Fed altering the domestic monetary base. C. an unsterilized foreign exchange intervention. D. a sterilized foreign exchange intervention.
An increase in price will lead to an increase in quantity supplied. This statement is
A. the law of supply. B. the law of demand. C. a normative statement. D. untrue always.