When the macro equilibrium is above full employment, fiscal policy should be used to shift aggregate demand by the amount of
A. The difference between saving and investment.
B. The AD excess, which also allows for price level changes.
C. The difference between desired saving and desired investment.
D. None of the choices are correct.
Answer: B
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Which economy managed to eliminate economic profits and losses?
A) Socialist Cuba B) Socialist China C) Fascist Italy D) Nazi Germany E) None of the above.
A favorable supply shock would
A) shift the production function up and decrease marginal products at every level of employment. B) shift the production function down and decrease marginal products at every level of employment. C) shift the production function down and increase marginal products at every level of employment. D) shift the production function up and increase marginal products at every level of employment.
Job candidates during a job search will seek to provide employers with ______ but avoid providing _____:
A. positive signals; negative signals. B. as much information as possible; private information. C. negative signals; positive signals. D. truthful information; false information.
If four workers were hired and we discovered that we could produce 88 units of production, what is the average physical product of labor?
A) 44 B) 352 C) 11 D) 22