Suppose that the economy is at full employment and aggregate demand increases by more than it is anticipated to increase. Other things remaining the same, ________.
A. long-run aggregate supply decreases
B. real GDP remains at potential GDP
C. real GDP increases above potential GDP
D. real GDP decreases below potential GDP
D. real GDP decreases below potential GDP
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In which of the following periods did average labor productivity in the United States grow the fastest?
A) 1929 to 1935 B) 1949 to 1973 C) 1973 to 1995 D) 1995 to 2008
Liquidity is:
A. a measure of how easily a particular asset can be converted quickly to cash without much loss of value. B. the speed with which dollars are spent in the economy. C. the speed with which physical dollars change hands in the economy. D. the magnitude of change in the money supply as controlled by the Fed.
The derived demand for labor is determined by
A. labor’s wage. B. labor’s marginal revenue. C. the marginal cost of the input labor. D. labor’s marginal revenue product.
Ceteris paribus, a decrease in the demand for automobiles will
a. increase the price of automobiles. b. increase the quantity supplied of automobiles. c. decrease the demand for automobile workers. d. increase the demand for automobile workers.