Structural unemployment results when wages are, for some reason, set above the level that brings supply and demand into equilibrium
a. True
b. False
Indicate whether the statement is true or false
True
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If a firm makes its own inputs rather than buying them, it ________ need to be concerned about the hold-up problem and ________ need to be concerned with contract compliance.
A) does not; does not B) does; does C) does; does not D) does not; does
An increase in the discount rate ________ the present value of a bond and ________ the price of the bond.
A) increases; increases B) decreases; decreases C) decreases; increases D) increases; decreases
If the expenditure multiplier is 3.5 and investment spending increases by $2,000 billion, what will be the change in GDP?
a. $2,000 billion b. $5,000 billion c. $571.4 billion d. $3,500 billion e. $7,000 billion
If total output is calculated by adding up the market value of goods and services produced, then more expensive items:
A. receive the same weight as cheaper items. B. receive a smaller weight than cheaper items. C. receive a greater weight than cheaper items. D. are double counted.