In the classical model, a temporary decrease in government spending would cause a decrease in
A) output, the real interest rate, real wages, and the price level.
B) employment, the real interest rate, real wages, and the price level.
C) output, employment, the real interest rate, and the price level.
D) output, employment, real wages, and the price level.
C
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Employment discrimination leads to the _________________ of labor.
Fill in the blank(s) with the appropriate word(s).
In a competitive industry some firms earn positive economic profits while some earn zero economic profit in the long run because:
A) there exists free entry and exit of firms. B) the firms have different cost structures. C) the firms sell their output at different prices. D) the industry supply curve is perfectly elastic.
What effect does a depreciation of the dollar have on real GDP in the United States in the short run?
A) Real GDP will be unaffected by the depreciation of the dollar. B) Real GDP will rise. C) Real GDP will be unchanged, but nominal GDP will rise. D) Real GDP will fall.
Which of the following are characteristics of market based regulations?
A) regulatory tripwires B) monitoring the value of a bank's subordinated debt instruments C) Market traders must have good information about depository institution risk. D) all of the above