Which components of aggregate expenditure change as a result of real GDP changing?
A) consumption expenditure, investment, and government expenditure on goods and services
B) consumption expenditure and investment
C) consumption expenditure and imports
D) consumption expenditure and government expenditure on goods and services
E) consumption expenditure, investment, and exports
C
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If a firm's labor input response to a decrease in the wage differs between the short and the long run, we know that more workers will be hired after the initial short run adjustment.
Answer the following statement true (T) or false (F)
Total income in an economy is equal to
A) the sum of wages, interest, rent, and profit. B) firm revenues. C) GDP minus net exports. D) income minus taxes.
This factor contributes to the winner's curse
a. your estimate of the value of the object was not the most optimistic b. your bid was not the highest c. there were not many other bidders you had to beat out d. you did not shade your bid enough
For this question, assume that the production function exhibits the same characteristics as those presented in the textbook. Based on these characteristics (i.e., assumptions), successive and equal increases in capital per worker will cause which of the following to occur?
A) Output per worker will decline. B) Output per worker will not change. C) Output per worker will increase by a constant amount. D) Output per worker will increase by a larger amount. E) none of the above