Which is most likely to cause a temporary spurt in the growth of GDP that cannot be maintained in the long run?
a. An unanticipated increase in aggregate demand.
b. An anticipated increase in aggregate demand.
c. An increase in long run aggregate supply (LRAS).
d. An increase in wage rates
A
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The production possibilities frontier is the boundary between
A) those combinations of goods and services that can be produced and those that can be consumed. B) those resources that are limited and those that are unlimited. C) those combinations of goods and services that can be produced and those that cannot. D) those wants that are limited and those that are unlimited.
In the figure above, the opportunity cost of moving from point C to point D is
A) the loss in production in the health care sector. B) the increase in production in the education sector. C) zero. D) the loss in production in the education sector.
In Macroland, autonomous consumption equals 100, the marginal propensity to consume equals 0.75, net taxes are fixed at 40, planned investment is fixed at 50, government purchases are fixed at 150, and net exports are fixed at 20. Planned aggregate expenditure equals:
A. 320 + 0.25Y. B. 320 + 0.75Y. C. 290 + 0.25Y. D. 290 + 0.75Y.
If the price of output increases, the equilibrium wage of workers who produce that output will ________ and ________ workers will be hired.
A. increase; more B. increase; fewer C. decrease; more D. decrease; fewer