From an initial long-run macroeconomic equilibrium, if the Federal Reserve anticipated that next year aggregate demand would grow significantly slower than long-run aggregate supply, then the Federal Reserve would most likely
A) decrease interest rates.
B) increase interest rates.
C) decrease income tax rates.
D) increase income tax rates.
Answer: A
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The above (incomplete) table provides information about the relationships between output and various cost measures. The marginal cost per unit when increasing output from 14 to 17 units is
A) $20. B) $30. C) $380. D) None of the above answers is correct.
Which of the following is a difference between real GDP per capita and real GDP per worker hour?
a. Real GDP per capita is the dollar value of output produced by an average worker in one hour, while real GDP per worker hour is the number of available goods and services per person. b. Real GDP per capita is the ratio of real GDP to population, while real GDP per worker hour is the ratio of GDP to the number of hours worked. c. Real GDP per capita is the difference between real GDP and population, while real GDP per worker hour is the difference between real GDP and the number of hours worked. d. Real GDP per capita increases with an increase in population, while real GDP per worker hour decreases with an increase in population.
The longest contractionary period in the U.S. Economy since 1854 was how long?
a. 3 ½ years b. 4 ½ years c. 5 ½ years d. 6 ½ years
Allocative inefficiency due to unregulated monopoly is characterized by the condition:
A. P = MR. B. P > MC. C. P > AVC. D. P = MC.