For a macroeconomist, the case for aggregation is based on two principles?1) the composition of demand and supply may not matter for some purposes, and 2)
a. during fluctuations markets normally move together.
b. individual markets allocate resources efficiently.
c. inflation, unemployment, and growth never go together.
d. individual markets distribute income efficiently.
a
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The marginal product of capital is always ________ and it ________ as the capital stock increases
A) positive; increases B) positive; decreases C) negative; increases D) negative; decreases
A one percentage point in the growth rate
A) does not make much difference in the long run per capita real GDP. B) will not influence the real standard of living in a country. C) can make a big difference in the per capita real GDP because of urban congestion. D) can make a big difference in the per capita real GDP because of compounding.
Which of the following best explains why the monopolist's marginal revenue is less than the selling price?
a. To sell more units, the monopolist must reduce price on all units sold. b. As the monopolist expands output, the average total cost will decline. c. The monopolist charges each consumer the highest possible price. d. When a firm has a monopoly, consumers have no choice other than to pay the price set by the monopolist.
Supply-side economics is based on the theory that:
a. budget deficits will stimulate demand, output, and employment. b. budget deficits will lead to higher interest rates, which will weaken their expansionary impact. c. higher tax rates will increase tax revenues. d. increases in aggregate supply lower the price level.