The aggregate expenditure model focuses on the relationship between ________ and ________ in the short run, assuming ________ is constant
A) total income; real GDP; the price level B) total spending; real GDP; the price level
C) total production; total income; real GDP D) total spending; real GDP; total income
B
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The equilibrium effects of a temporary increase in total factor productivity include
A) an increase in the real wage and an increase in the real interest rate. B) an increase in the real wage and a decrease in the real interest rate. C) a decrease in the real wage and an increase in the real interest rate. D) a decrease in the real wage and a decrease in the real interest rate.
Of the following items, which is least likely to be discussed by a teacher of macroeconomics?
a. the national employment b. the business cycles c. our unemployment policy d. national income accounting e. a firm's profit
The figure below shows an IS-LM-FE model for an economy with fixed exchange rates. Initially the economy was at Point A, a triple intersection. Here, the FE curve is flatter than the LM curve.
Assume that the economy was initially at Point A. Which of the following would have caused the economy to move to and remain at Point B?
A. Expansionary monetary policy with sterilization B. Expansionary monetary policy without sterilization C. Contractionary fiscal policy without sterilization D. Expansionary fiscal policy with sterilization
The marginal physical product of labor is
A) The additional revenue received by the firm by selling the out of one additional worker. B) The output which labor could produce without other factors of production. C) The amount of extra output that is produced when one extra worker is added and other factors of production are held constant. D) The amount of extra output that is produced when one worker is added and other factors of production are increased proportionally.