If the marginal productivity of labor was the sole determinant of household income in the U.S., then
a. no households would be poor according to the official government definition of poverty.
b. no households would be poor according to a relative definition of poverty.
c. the distribution of income would be unequal.
d. every household would have sufficient income to meet biological needs.
C
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When recessions are the result of slowing growth in potential output, the government's best policy is to:
A. decrease aggregate supply. B. promote saving and investment. C. reduce government spending. D. increase aggregate demand.
Demand for the Brazilian real is
A) determined by how well the real maintains its value. B) a function of the Brazilian banking system. C) derived from the supply of U.S. dollars. D) derived from the demand for Brazilian goods.
During the 1960s, the inflation rate and the unemployment rate were inversely related
a. True b. False Indicate whether the statement is true or false
When the consumer price index is computed, the base year is always the first year among the years being considered
a. True b. False Indicate whether the statement is true or false