What is the full-employment output level?
a. The output level that results when the loanable funds market clears
b. The output level that results when the returns to labor are zero
c. The output level that results when factories are completely full
d. The output level that results when the labor market clears
e. The output level that would occur if the output level was positive.
D
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Compare and contrast the effect of perfect competition to the effect of perfect price discrimination on: a) efficiency. b) consumer surplus. c) economic profit in the long run
What will be an ideal response?
Which of the following statements is true of the impact of trade restrictions on domestic employment?
a. Domestic firms will produce the goods that otherwise would have been produced abroad, thus employing foreign workers instead of domestic workers. b. Beside the protected industry, other industries will also benefit in terms of employment. c. Workers in the protected industry migrate to other industries. d. Restrictions imposed on trade redistribute jobs by creating employment in the protected industry and reducing employment elsewhere. e. Minimum wages for skilled and unskilled labor increase in the domestic country.
If the supply of money increases as a result of an open market ______ of securities by the Fed, the interest rate will ______.
a) sale; increase b) sale; decrease c) become flatter d) none of the above
To remain in consumer optimum
A) a price increase requires an increase in consumption. B) a price decrease requires an increase in consumption. C) a price decrease requires a decrease in consumption. D) prices must remain static.