The aggregate production function describes the relationship between
A) real GDP and the quantity of labor employed.
B) real GDP and the price level.
C) the rate of growth of real GDP and inflation.
D) real GDP and the unemployment rate.
A
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The main reason central banks engage in foreign-exchange interventions is to
A) stabilize the domestic money supply. B) stabilize domestic interest rates. C) stabilize foreign interest rates. D) stabilize the exchange rate.
The Federal Reserve Act of 1913 was passed to
a. convert all banks to national banks b. check the overreach of powerful financial trusts c. allow banks to hold excess reserves d. allow banks to accept collateral as guarantees against outstanding loans e. prevent banks from accepting collateral as guarantees against outstanding loans
The difference between a firm's total revenues and total costs when all explicit and implicit costs are included is the firm's
a. economic profit. b. accounting profit. c. opportunity cost of capital. d. long-run average total cost.
Assume that the government increases spending and finances the expenditures by borrowing in the domestic capital markets. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the quantity of real loanable funds per time period and net nonreserve-related international borrowing/lending in the context of the Three-Sector-Model?
a. The quantity of real loanable funds per time period rises, and net nonreserve-related international borrowing/lending becomes more positive (or less negative). b. The quantity of real loanable funds per time period rises, and net nonreserve-related international borrowing/lending becomes more negative (or less positive). c. The quantity of real loanable funds per time period falls, and net nonreserve-related international borrowing/lending becomes more positive (or less negative). d. The quantity of real loanable funds per time period and net nonreserve-related international borrowing/lending remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.