According to the Lucas supply function, when the income effect dominates the substitution effect, workers who experience a ________ price surprise will work ________ hours.
A. positive; more
B. negative; fewer
C. negative; the same number of
D. positive; fewer
Answer: D
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The interest rate is determined by
a. the supply and demand of loanable funds. b. the supply and demand of land. c. the supply and demand of marginal land. d. None of the above is correct.
The actions of borrowers and lenders are coordinated by
a. the interest rate in the loanable funds market. b. the government in the resources market. c. businesses in the resources market. d. the interest rate in the goods and services market.
How does macroeconomics differ from microeconomics?
A. The study of the opportunity cost of nations versus the opportunity cost of individuals B. The underlying principles C. The use of abstractions and models D. The use of aggregate indicators over market resource allocation
Disposable income is equal to consumption
What will be an ideal response?