In equilibrium, with exports equal to imports it must be the case that
A) leakages equal injections.
B) saving plus taxes equal government expenditures plus investment.
C) total expenditures equal GDP.
D) All of these.
D
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Some economists argue that the short-run Phillips curve is not vertical, and that monetary policy can be effective in the short run. Which one of the following is not one of the reasons for this skepticism?
A) Individuals may not be able to use information of Fed Policy to make a reliable forecast of inflation. B) Empirical evidence shows workers and firms have rational expectations. C) Contracts with workers and suppliers may hinder firms' abilities to adjust to price changes. D) Wages and prices may not adjust rapidly enough to keep the short-run Phillips curve vertical.
The designate M1 measure of money consists of
A) the most liquid types of money in the U.S. system. B) small time deposits only. C) credit cards and ATM cards. D) gold and gold coins.
Why do firms opt for internal labor markets when they may be able to find more candidates with necessary qualifications outside?
Suppose Morris earns $50 per week at his job and chooses to spend all of his income on either apples or biscuits. Suppose apples cost $5 per pound and a pack of biscuits costs $2 each. Which combination of fruits and biscuits will lie on Morris's budget constraint?
a. 6 pounds of apples and 12 packs of biscuits b. 6 pounds of apples and 12 packs of biscuits c. 5 pounds of apples and 8 packs of biscuits d. 8 pounds of apples and 5 packs of biscuits