Economist Milton Friedman's theory of money demand is based on the supposition that money has a very ________ range of substitutes, giving monetary policy a ________ effect on aggregate demand
A) wide, strong
B) wide, weak
C) narrow, strong
D) narrow, weak
A
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What is the principal-agent problem? What are three ways in which firms try to cope with it?
What will be an ideal response?
If the supply of labor increases while demand for labor is unchanged,
A) the real wage and labor productivity will increase. B) the real wage will decrease and labor productivity will increase. C) the real wage will increase and labor productivity will decrease. D) the real wage and labor productivity will decrease.
The average value added per U.S. farm worker is about __________ times that of farm workers in low- and middle-income countries
a. one half b. one c. ten d. seventy-five e. five hundred
Which of the following statements best reflects Keynes' view of the aggregate supply curve?
A. It tends to be vertical, because the economy naturally tends toward equilibrium positions of full employment. B. It tends to be upward sloping (but not vertical), because as we try to produce more output out of our given resources, some labor has to work overtime at higher pay, driving up costs and prices. C. It tends to be horizontal during periods when substantial amounts of resources are unemployed. D. It tends to slope downward and to the right reflecting people's natural tendency to postpone purchases when they lose their jobs.