In the Keynesian model with both a variable price level and money wage, the aggregate supply function will be
a. upward sloping but flatter than for the variable-price/fixed-wage version of the model.
b. upward sloping but steeper than for the variable-wage/fixed-price version of the model.
c. vertical.
d. horizontal.
B
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In the figure above, when disposable income equals $20 trillion,
A) consumption expenditure is less than disposable income but it is not possible to determine if consumers are saving or dissaving. B) consumption expenditure is greater than disposable income, so consumers are saving. C) consumption expenditure is greater than disposable income, so consumers are dissaving. D) consumption expenditure is less than disposable income, so consumers are dissaving. E) consumption expenditure is less than disposable income, so consumers are saving.
Why would a firm prefer that a company like J.D. Power (which provides product satisfaction reviews) review its product rather than doing it within the firm?
A) J.D. Power provides less credibility. B) J.D. Power provides greater credibility. C) J.D. Power is more honest than the average firm. D) J.D. Power has a government monopoly in providing product satisfaction reviews.
If I am worried about the price of assets such as bonds falling, I may be more inclined to hold money instead. You hold cash for the:
A. precautionary motive. B. speculative motive. C. transactions motive. D. impulsive motive.
In a report made to the U.S. Congress in 2001, the National Academy of Sciences cautioned that if fuel economy encourages the production of smaller and lighter cars, "Some additional traffic fatalities would be expected." This statement suggests that
A) U.S. auto manufacturers are more concerned about producing fuel efficient cars to compete with their Japanese and South Korean rivals than about consumer safety. B) there is a tradeoff between safety and fuel economy. C) society should value safety more highly than fuel economy. D) society should value fuel economy more highly than consumer safety because of the long-term environmental benefits generated by less gasoline use.