When the prevailing market wage is above equilibrium, we say:
A. there is no unemployment.
B. there is a surplus of labor.
C. the quantity of labor demanded is more than the quantity supplied.
D. All of these are true.
B. there is a surplus of labor.
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In calculating GDP, we must
A) add the market value of imports and subtract the market value of exports. B) add the market value of exports and subtract the market value of imports. C) exclude net exports of goods and services (NX). D) add the value of the goods produced outside of the United States by American firms. E) subtract the market value of imports, because these goods are produced in a country other than the United States, and subtract the market value of exports, because these goods are consumed in a country other than the United States.
Table 8-2 Price Quantity Total Cost$22 6$ 60 2010100 1816160 1621210 1428280? In Table 8-2, the profit-maximizing level of output is
A. 6 B. 10 C. 16 D. 21
The investment demand curve shows the amount businesses spend for investment goods at different possible:
A. price levels. B. levels of GDP. C. rates of interest. D. levels of taxation.
Which of the following policies would a Keynesian expect to produce the largest decrease in income?
A. A reduction in government spending of $100 billion B. A decrease in transfer payments of $100 billion C. An increase in government spending of $100 billion D. A tax increase of $100 billion